* U.S. dollar at 3-week low
* U.S. CPI gains by the most in more than 8-1/2 years in March
* Investors eye U.S. retail sales on Thursday (Updates prices)
By Diptendu Lahiri
April 14 (Reuters) - Gold prices gave up early gains and were flat on Wednesday, as weakness in the U.S. dollar due to higher inflation was countered by some firming in Treasury yields.
"Though the dollar is weaker this morning, but a slight uptick in U.S. Treasury yields is keeping gold's upside movement muted," said Margaret Yang, a strategist at DailyFX.
"The next big thing that investors are looking for is the retail sales data on Thursday and if it beats forecasts, which it is expected to... (It) will put some pressure on gold," she said adding that the fall could be limited since gold has double-bottomed at $1,680.
Consumer prices in the United States soared the most in more than 8-1/2 years in March, setting off what most economists expect to be a fleeting spell of higher inflation, supporting bullion — a traditional inflation hedge. U.S. dollar fell to three-week lows, making gold cheaper for holders of other currencies, while a slight rise in Treasury yields increased the opportunity cost of holding the metal that pays no return. USD/ US/
Bullion was also supported by comments from Philadelphia Federal Reserve President Patrick Harker who said the Fed will not withdraw its funding just yet even as the U.S. economy could expand by 5% to 6% this year. must test the $1,760-mark, a former support turned resistance, in order to attract new bullish-pattern traders and push prices higher, Avtar Sandu, a senior commodities manager at Phillip Futures, said in a note.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.