FX.co ★ Gold Dips As Bond Yields Resume Rise

Gold prices were moving lower on Thursday as bond yields resumed their rise amid expectations for aggressive Federal Reserve tightening.

Spot gold dipped 0.7 percent to $1,944.56 per ounce, while U.S. gold futures were down half a percent at $1,946.80.

10-year bond yields rose across Europe after European Central Bank Vice President Luis de Guindos supported a rate hike as early as July.

Guindos said that there is no reason for not winding down the asset purchase program in July.

Eurozone inflation accelerated sharply, but less than initially estimated, to set a record high in March underpinned by surging energy prices, final data from Eurostat showed earlier today.

Consumer price annual inflation jumped to 7.4 percent from 5.9 percent in February. Although the rate was revised down slightly from the flash estimate of 7.5 percent, it was the strongest on record.

The current inflation figure is more than triple the European Central Bank target of 2.0 percent.

Amid significant uncertainty to growth outlook, investors awaited comments from the central bank holy trinity of Fed chair Jay Powell, ECB president Christine Lagarde and Bank of England governor Andrew Bailey.