Gold Down, Investors Digest the U.S. Inflation Data

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By Gina Lee – Gold was down on Thursday morning in Asia. Investors are digesting the , which suggested remains high but has peaked in April, easing some concerns about more aggressive interest rate hikes from the Federal Reserve.

were down 0.01% to $1,853.58 by 11:12 PM ET (3:13 AM GMT). The dollar, which normally moves inversely to the gold, edged up on Thursday morning.

The U.S. inflation eased slightly in April but remained close to a 40-year high.

The CPI rose 0.3% month-on-month in April, the smallest gain since August, said the U.S Bureau of Labor Statistics on Wednesday, compared with the 1.2% month-to-month surge in the CPI in March, the largest advance since September 2005.

The U.S. Federal Reserve raised its interest rate to 1% last week to cool inflation, the biggest hike in 22 years. The investors are concerned about the tightened policies from the Fed might induce a recession. The 10-year US yield extended a decline to 2.90%.

On the data front, the U.S. will release and later today. San Francisco Fed President Mary Daly will speak on the same day.

In other precious metals, silver inched up 0.1%. Platinum dipped 0.2% while palladium fell 0.7%.

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