Gold Slips Below $4700 On Inflation Concerns

(RTTNews) - Gold prices slipped below $4,700 an ounce on Wednesday as a stronger dollar and rising Treasury yields dented bullion's safe-haven appeal.

Spot gold dipped 0.35 percent to $4,697 an ounce while U.S. gold futures were up half a percent at $4,707.75.

The U.S. dollar held near a one-week high as investors assessed the path for interest rates under new leadership.

U.S. Treasury yields fell slightly after rising on Tuesday in reaction to hotter-than-expected U.S. CPI data.

The two-year U.S. Treasury yield rose to nearly 4 percent on Tuesday and the 30-year yield climbed to 5.03 percent after stronger consumer price inflation data reinforced bets that the Federal Reserve may have to raise interest rates next year.

The U.S. Senate confirmed Kevin Warsh on Tuesday to serve as a member of the Federal Reserve Board of Governors, marking an important step towards his succeeding Jerome Powell as the next head of the U.S. central bank.

Meanwhile, as Iran peace deal hopes fade and inflation concerns mount, traders looked ahead to the high-stakes meeting in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping for direction. Taiwan, tariffs and the Strait of Hormuz are on the agenda for the meeting.

Progress toward a U.S.-Iran peace agreement remains limited, with President Trump saying the U.S. doesn't have to "rush anything" on Iran and that he doesn't need Beijing's help to end the war.

Trump accused sections of the American media of "giving Iran false hope" through their coverage of the war and lashed out at what he called "Fake News" outlets.

A senior Pentagon official reportedly said on Tuesday that the United States' cost of war with Iran has climbed to nearly 29 billion dollars.