Spot gold bottoming out, high inflation unacceptable, Bank makes demands on countries

On Wednesday (June 8), spot gold pushed lower and recovered as the U.S. dollar index surged higher and retreated, with both trapped in oscillator mode. Investors await the upcoming release of U.S. inflation data to further study the Fed's interest rate hike prospects. U.S. Treasury Secretary Yellen said the level of inflation is unacceptably high. The World Bank called on national policymakers to work to boost food and energy production and avoid import and export restrictions that could lead to further price spikes.

On Wednesday (June 8), spot gold pushed lower and recovered as the U.S. dollar index surged higher and both were stuck in oscillator mode. Investors await the upcoming release of U.S. inflation data to further study the prospects of the Federal Reserve rate hikes. U.S. Treasury Secretary Yellen said the level of inflation is unacceptably high. The World Bank called on national policymakers to work to boost food and energy production and avoid import and export restrictions that could lead to further price spikes.

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At 20:01 GMT, spot gold sank 0.01% to $1851.92/oz; COMEX futures gold main contract rose 0.13% to $1854.6/oz; the dollar index floated 0.02% to 102.3573. Gold prices fell a maximum of 0.35% during the day, while the U.S. index rose a maximum of 0.43% during the day.

Yellen: High inflation unacceptable

Investors now await the upcoming release of the core consumer price index (CPI) on Friday (June 10). The market expects that the U.S. overall and core CPI in May is expected to rise 8.3% and 5.9% year-on-year, respectively, the Fed's aggressive interest rate hike prospects are difficult to shake, gold trends are largely swayed by Fed policy.

U.S. Treasury Secretary Yellen told senators on Tuesday (June 7) that the current level of inflation in the United States is "unacceptable" and that she expects inflation to remain high, and that the Biden administration may raise its inflation forecast for this year in its budget proposal.