Gold to find support as investors abandon riskier assetsanalyst
Dollar hits onemonth peak

June 13 Reuters Gold fell 1 on Monday after the dollar strengthened and Treasury yields rose as data showing surging inflation in the U.S. fuelled bets for steeper rate hikes from the Federal Reserve.

Spot gold fell 0.8 to 1,855.19 per ounce by 1021 GMT, retreating from a more than onemonth high of 1,877.05 touched earlier.

U.S. gold futures shed 0.9 to 1,857.80 per ounce.

Data on Friday showed U.S. consumer prices accelerated in May, marking its largest annual increase in nearly 4012 years, suggesting that the Fed could continue with its 50 basis points interest rate hikes through September to combat inflation.

While inflation worries normally support gold, expected rate hikes to combat the rising prices tend to boost the dollar and reduce the appeal of nonyielding bullion.

Bullion is suffering due to the strength to the U.S. dollar, said Carlo Alberto De Casa, external market analyst at Kinesis.

But the fact that gold continues to hold above the 1,850 technical support level following the strong rebound on Friday shows there is still good interest from investors, De Casa added.

A volatile session on Friday saw gold falling to a near onemonth trough before rebounding strongly as economic concerns took centre stage.

Benchmark U.S. 10year Treasury yields rose to their highest level since 2018 on Monday, while the dollar hit a onemonth high, making gold more expensive for…