Por Sumita Layek
Apr 14 (Reuters) – Gold prices fell slightly on Wednesday as a record rally in global equity markets offset bullion support for a weaker dollar and data showing inflation accelerating in the United States. .
* At 1013 GMT, spot gold was down 0.1% at $ 1,743 an ounce, while US gold futures were down 0.2% at $ 1,743.90.
* “Gold reacted positively to the US inflation data, because bond yields fell and the dollar weakened as well, and that certainly supports gold,” said Commerzbank analyst Daniel Briesemann.
* However, he added, global stocks at record highs are “a sign of a high appetite for risk … Investors are looking for other possibilities in which to invest in addition to gold, where they can find higher returns.”
* Bullion rose as much as 0.9% on Tuesday after US consumer prices posted their biggest rise in more than 8 1/2 years in March. Gold is often considered a hedge against inflation.
* The US dollar was falling, making gold cheaper for holders of other currencies. However, benchmark Treasury yields were recovering slightly, increasing the opportunity cost of holding gold.
* The bullion was also supported by comments from Philadelphia Federal Reserve Chairman Patrick Harker, who said the Fed will not withdraw its funding even though the US economy could expand 5% to 6% this year.
* Among other precious metals, silver was flat at $ 25.32 an ounce and palladium was down 0.1% at $ 2,686.67. Platinum was up 1.7% at $ 1,176.06.
(Report by Sumita Layek in Bengaluru, Edited in Spanish by Ricardo Figueroa)