Gold price shrugs inflation news, holds near 3-month high

Gold prices held close to three-month highs on Tuesday, as investors weighed rising inflation expectations and comments from Federal Reserve officials for clues on monetary policy going forward.

US gold futures were trading flat in New York with June contracts exchanging hands for to $1,834.70 per ounce by mid-afternoon.

Meanwhile, bond market expectations for the pace of inflation over the coming half decade surged earlier in the week to the highest since 2006. The jump in the five-year breakeven rate comes amid a run-up in commodities, and adds to a longer-term uptick in inflation bets that’s been fueled by improving prospects for growth and pandemic-related stimulus measures.