Gold Reacts to Dollar and Yields Amid US Inflation Data

Gold prices slipped as Federal Reserve Governor Michelle Bowman's comments indicated the need for additional interest rate hikes to control inflation. The remarks caused the dollar index and Treasury yields to rise, resulting in a muted to lower reaction in gold futures. The focus this week will be on the U.S. consumer price index (CPI) data, which could provide more clarity on the Fed's policy stance. While gold is typically seen as a hedge against inflation, higher interest rates increase the opportunity cost of holding nonyielding bullion. Silver, platinum, and palladium also experienced declines.