Gold retreats from five-month peak as investors digest positive U.S. economic data
Gold subdued on Wednesday in Asian trade after hitting a five-month peak during the previous session as investors digest positive U.S. economic data and an increase in bond yields.
Gold futures edged down 0.32% to $1,898.95 by 12:43 AM, scaling back below the $1,900-mark. The dollar, which usually moves inversely to gold, advanced on Wednesday and the benchmark 10-year U.S. Treasury yield soared to a more than one-week high.
The U.S. data released on Tuesday indicated a stronger-than-expected Institute of Supply Management Manufacturing Purchasing Managers Index as it hit 61.2 in May. However, investors remain wary of raw materials shortages and labor constraints.
Across the Atlantic, the Eurozone Consumer Price Index improved 2% year-on-year in May, beating the European Central Bank’s target for the first time in more than two years.
In other precious metals, both palladium and silver lost 0.1%, while platinum steadied at $1,191.51.