Gold climbs on weaker dollar

Gold prices climbed to a more than three-week peak on Wednesday, aided by a weaker dollar and yields after data showed the US consumer price index rose less than expected in April, boosting chances of interest rate cuts by the Federal Reserve, reports Reuters.
Spot gold rose 0.4 per cent to $2,367.29 per ounce, as of 1322 GMT. US gold futures rose 0.6 per cent to $2,372.70.
The CPI data "could be an early indication that over time inflation will cool and the Fed will make its first interest rate cut," said Phillip Streible, chief market strategist at Blue Line Futures.
The CPI rose 0.3 per cent last month after advancing 0.4 per cent in March and February, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut.
Economists polled by Reuters had forecast the CPI gaining 0.4 per cent on the month and advancing 3.4 per cent year-on-year.
The dollar dropped 0.5 per cent against a basket of currencies to hit its lowest in over a month, making gold more attractive for other currency holders. Benchmark 10-year Treasury yields also hit a more than one-month low.
Technically, the gold futures bulls have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close in June futures above solid resistance at $2,400.00, wrote Jim Wyckoff, senior analyst at Kitco Metals in a note.
Spot silver rose 1.5 per cent to $29.03 per ounce, palladium gained 2.8 per cent to $1,005.50 and platinum climbed 2.1 per cent to $1,052.90, hitting a near one-year high.