Gold edges down on firmer dollar, rate-hike outlook

Surprisingly strong inflation data lifted euro zone bond yields to their highest in more than a decade on Tuesday, and pushed expectations for the peak in the European Central Bank's main interest rate to almost 4%. High interest rates dampen gold's appeal as an inflation hedge while raising the opportunity cost of holding the non-yielding asset.

Gold edges down on firmer dollar, rate-hike outlook
Surprisingly strong inflation data lifted euro zone bond yields to their highest in more than a decade on Tuesday, and pushed expectations for the peak in the European Central Bank's main interest rate to almost 4%. High interest rates dampen gold's appeal as an inflation hedge while raising the opportunity cost of holding the non-yielding asset.