Gold futures booked back-to-back gains on Wednesday, putting the precious metal on pace for a weekly gain. Gold for August delivery rose 0.2%, adding $4.40, to settle at $1,856.50 an ounce on Comex. The yellow metal found some support despite the 10-year Treasury rate pushing back above 3% and the ICE US Dollar index rising 0.2% against a basket of rival currencies. A strong dollar can erode the attractiveness of commodities priced in the unit, making them more expensive to users of other currencies. Higher bond yields also can hurt nonyielding assets like gold. Investors have been tepid about adding risk ahead of Friday’s update on U.S. inflation, which could help solidify views around if the surge in the cost of living already has peak, or still could push higher.
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