Gold Edges Higher, Supported by Signs of Mild U.S. Inflation
2348 GMT — Gold edges higher in the early Asian session, supported by signs of mild U.S. inflation that back the case for further Fed rate cuts that would enhance the appeal of the non-interest-bearing precious metal. Economic data released Tuesday showed CPI rose a seasonally adjusted 0.2% in April, but year-over-year CPI cooled to 2.3% last month, a four-year low. Also, 'selling exhaustion' of the precious metal already seems likely, TD Securities' Daniel Ghali says in a research report. Despite the U.S.-China trade deal, Chinese gold ETF inflows continue to gather steam, the senior commodity strategist notes. Spot gold is 0.1% higher at $3,252.70/oz. (ronnie.harui@wsj.com)
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