COMEX Gold consolidates as gains post US inflation fail to hold on

Published on May 11, 2023 12:40

Gold is consolidating around $2035 per ounce mark in Asia after good gains yesterday. Gold zoomed up above $2050 per ounce mark in a flash on a moderating US consumer price inflation reading. The Labor Department said its consumer price index climbed by 0.4 percent in April after inching up by 0.1 percent in March.The annual rate of consumer price growth edged down to 4.9 percent in April from 5.0 percent in March. The annual rate of core consumer price growth also dipped to 5.5 percent in April from 5.6 percent in March. Meanwhile, the World Gold Council or WGC stated in an update that Gold in US$/oz returned just 0.1% in April, consolidating after a strong run up during Q1. However, support for gold came from lower rates and positive ETF flows while lower inflation expectations and profit taking created a drag. Gold failed to sustain its gains above $2050 per ounce yesterday amid a good rally in the US dollar index which edged up well above 101 mark.