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Gold flat as US inflation data reduces early rate cut hopes

Spot gold was unchanged at $2,337.99 per ounce, while US gold futures rose 0.3% to $2,355.30 per ounce

Gold prices were little changed on Thursday, as the US dollar and Treasury yields firmed after hotter-than-expected inflation data diminished hopes for an early interest rate cut.

Spot gold was unchanged at $2,337.99 per ounce, as at 0107 GMT. It reached a record high for an eighth consecutive session until Tuesday.

US gold futures rose 0.3% to $2,355.30 per ounce.

The US dollar index hovered near a five-month high reached in the earlier session and US Treasury yields rose after the inflation data, making non-yielding bullion less attractive.

US consumer prices rose more than expected in March amid rises in the costs of petrol and shelter, casting further doubt on whether the Federal Reserve will start cutting interest rates in June.

Fed officials were concerned last month that progress on inflation might have stalled, making a longer period of tight monetary policy necessary, as per the minutes of the US central bank’s Mar 19 to 20 meeting.

Higher interest rates lower the appeal of holding non-yielding gold.

The Shanghai Futures Exchange will impose trading limits on its gold and copper contracts, it said on Wednesday, following sharp price rallies by both metals.

Sibanye Stillwater said it may look to raise around $500 million through prepayment arrangements such as so-called metals streaming to improve its cash position, even as the firm sees an improvement in metal prices and the market outlook.

Anglo American Platinum has not received offers for any of its South African assets, the mining company’s chief executive said, following speculation over the possible sale of its higher-cost operations.

Spot silver dropped 0.3% to $27.89 per ounce, platinum gained 0.5% to $964.20 and palladium shed 0.6% to $1,045.00.

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