Latest News

Gold Up, Investors Await U.S. Interest Rate Hike Clues from Inflation Data

© Reuters.

By Gina Lee – Gold was up on Wednesday morning in Asia. Investors shifting their focus to U.S. inflation data for interest rate hike clues after U.S. Federal Reserve Chairman Jerome Powell set a less hawkish tone and reiterated that the central bank would tackle inflation.

Gold futures inched up 0.01% to $1,818.75 by 11:39 PM ET (4:39 AM GMT). The dollar, which normally moves to gold, inched down on Wednesday.

At his Senate Banking Committee hearing for a second term as Fed chairman, Powell said the Fed could need several months to decide on the running down of its $9 trillion balance sheet, adding it would also ensure that high inflation did not become “entrenched”.

The Senate Banking Committee hearing for Fed vice-chair nominee Lael Brainard will take place on Thursday. Fed officials including Richmond Fed President Thomas Barkin, Philadelphia Fed President Patrick Harker, and Chicago Fed President Charles Evans will also speak on the same day.

Benchmark 10-year U.S. Treasury yields fell as investors had viewed interest rate hikes as negatively impacting economic growth. The yields hit 1.808% on Monday, its highest since Jan. 21, 2020.

In Asia Pacific, Chinese data released earlier in the day showed that the consumer price index (CPI) contracted 0.3% month-on-month while growing 1.5% year-on-year, while the producer price index (PPI) grew 10.3% year-on-year, in December.

Investors now await the U.S. CPI and the Fed Beige Book later in the day. The PPI will follow on Thursday.

In other precious metals, silver inched down 0.1% and platinum fell 0.4%, while palladium was flat at $1,920.67.

Gold Up, Investors Await U.S. Interest Rate Hike Clues from Inflation Data

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News