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Metals Stocks: Gold slips as dollar firms ahead of CPI report that could shift Fed rate-hike pace

Gold prices retreated Tuesday because the buck firmed ahead of a reading on U.S. consumer-level inflation that might push the Federal Reserve into more-aggressive interest-rate moves this year.

April gold GCJ8, -0.13% slipped $1.90, or 0.1%, to $1,318.90 an oz.

The ICE U.S. Dollar Index DXY, +0.11%  was up 0.2% at 90.062, and if that action continues, the buck may notch its first achieve in thee sessions. Dollar-yen USDJPY, +0.77%  traded at a two-week prime.

Read: Here’s the perfect quantity of gold to keep in your funding portfolio

Consumer prices are due at eight:30 a.m. Eastern, with economists polled by means of MarketWatch forecasting a zero.2% achieve for February, with a prediction for milder inflation owing to decrease gas prices. Core prices, which strip out gas and meals, are anticipated to upward push by means of the same amount.

On an annual basis, headline user prices most probably held secure at 2.1% in January, and core prices were unchanged at 1.eight%.

Read: What to watch in the CPI document

A stronger-than-expected inflation quantity may nudge the central financial institution closer to 4 hikes as an alternative of the 3 that the Federal Reserve has tentatively labored into its plans. The Fed is expected to increase interest rates in March, however the jury out on how aggressively it's going to act past that. For this reason, buyers have develop into hypersensitive to inflation knowledge.

Plus: Inflation is rattling markets — right here’s what you will have to find out about user prices

Rising inflation may add pressure on the Fed to speed up its rate rises, which might lift the buck, although strangle the stock marketplace. Gold, in turn, even supposing negatively affected by upper interest rates, may attract hedging call for against too-hot inflation.

As for other metals, May silver SIK8, -0.01%  fell 1 cent, or 0.1%, to $16.525 an oz.

Net lengthy positions in U.S. silver futures increased for the first time since January, UBS analyst Joni Teves said in a word.

“Silver has been such an underperformer of past due and probably the most few certain elements these days is that net period could be very lean. Despite recent beneficial properties, net speculative positions in silver are still best 18% of the report,” she said.

Read: Silver is poised to outpace gold this year

Among exchange-traded funds, the silver-focused exchange-traded iShares Silver Trust SLV, -0.13%  and the SPDR Gold Shares GLD, +0.00% registered restricted action in early trading. The VanEck Vectors Gold Miners ETF GDX, +0.88% then again, added 0.6%.

May copper HGK8, +0.18%  was little changed at $three.125 a pound. April platinum PLJ8, +0.11% rose 0.1% to $964.00 an oz and June palladium PAM8, +0.88%  rose 0.eight% to $975.20 an oz.