Gold Down, Investors Digest US Inflation Data By

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By Gina Lee – Gold was down on Thursday morning in Asia. Investors are digesting the, which suggested remains high but has peaked in April, easing some concerns about more aggressive interest rate hikes from the Federal Reserve.

were down 0.01% to $ 1,853.58 by 11:12 PM ET (3:13 AM GMT). The dollar, which normally moves inversely to gold, edged up on Thursday morning.

US inflation eased slightly in April but remained close to a 40-year high.

The CPI rose 0.3% month-on-month in April, the smallest gain since August, said the US Bureau of Labor Statistics on Wednesday, compared with the 1.2% month-to-month surge in the CPI in March, the largest advance since September 2005.

The US Federal Reserve raised its interest rate to 1% last week to cool inflation, the biggest hike in 22 years. Investors are concerned about the tightened policies from the Fed might induce a recession. The 10-year US yield extended a decline to 2.90%.

On the data front, the US will release and later today. San Francisco Fed President Mary Daly will speak on the same day.

In other precious metals, silver inched up 0.1%. Platinum dipped 0.2% while palladium fell 0.7%.

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