Gold prices continued their upward trend in European trade on Wednesday, marking the second consecutive day of gains and approaching multi-week highs as both the dollar and US treasury yields weakened.
This movement precedes the release of critical US consumer price data, which will provide insights into the future of US interest rates.
The increase follows the release of producer price data yesterday, which included significant downward revisions for March, thereby increasing the likelihood of a Federal Reserve rate cut this summer.
Prices
Gold prices climbed 0.6% today to $2372 an ounce, after hitting a session-low of $2355.
The precious metal advanced 0.95% yesterday, continuing its gains and moving away from two-week highs of $2378.
The Dollar
The dollar index declined by 0.25% on Wednesday, extending its losses for the third consecutive session and reaching two-week lows at 104.81 against major currencies.
A weaker dollar makes gold-denominated futures less expensive for holders of other currencies.
US Yields
US 10-year treasury yields dropped by 0.5% today to a five-week low of 4.418%, supporting non-yielding assets, following the US producer price data release.
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