By Sumita Layek
(Reuters) – Gold prices reversed trend on Friday, breaking above the key level of $ 1,900 an ounce, after data showed U.S. consumer prices rose in April, boosting demand for the bullion as a hedge against the trend. inflation.
* At 1751 GMT, spot gold was up 0.3% to $ 1,902.27 an ounce, after falling as much as 0.8% earlier in the session, to close the week up 1.1 %, your fourth week in a row of earnings. Meanwhile, US gold futures added 0.4% to $ 1,905.30.
* Consumer prices rose in April in the United States and the core inflation measurement exceeded the Federal Reserve’s 2% target with its highest annualized reading since 1992, reflecting the rebound in domestic demand after the economy reopened.
* “We saw a slight rebound in consumer data. All of this continues to support a very favorable core inflation environment for gold,” said David Meger, director of metals trading at High Ridge Futures.
* The Federal Reserve’s refusal to slow down its bond-buying program or raise interest rates also favors gold, although some psychological resistance at the $ 1,900 level and the strength of the greenback are acting as the wind. against, he added.
* The dollar index slowed its rise, while US Treasury yields fell.
* The White House presented a $ 6 trillion budget proposal that would increase spending on infrastructure, education and the fight against climate change, arguing that it makes fiscal sense to invest now when the cost of borrowing is cheap and reduce deficits later.
* In other precious metals, silver closed stable at $ 27.86 an ounce; platinum subtracted 0.2% from $ 1,176.99; and palladium rose 0.8% to $ 2,827.04.
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(Reporting by Nishara Karuvalli Pathikkal, Arundhati Sarkar and Brijesh Patel in Bengaluru; Edited in Spanish by Javier Leira)