Gold fell in Asia on Thursday morning, with investors waiting for U.S. economic data to further measure inflationary pressures. A reinforcing dollar puts a cloth on the appeal of the yellow metal.
Gold futures were down 0.45% at $ 1,775.35. The dollar, which normally moves against gold, rose to an 11-week high on Thursday.
After forecasting an interest rate hike in 2022, Dallas Federal Reserve Chairman Robert Kapilon said the economy would meet sooner than the central bank’s threshold, although his rival in Atlanta, Rafael Postik, said the central bank would slow down the process a few months later.
The central bank recently sought to quell investor concerns after delivering an unexpectedly bad policy decision in the previous week. Officials, including central bank chairman Jerome Powell, stressed that the central bank would maintain a relaxed monetary policy, but said a gradual withdrawal of emergency support was likely in the coming months.
While gold is widely regarded as a safeguard against inflation, an increase in the central bank’s interest rate will increase the cost of holding it.
On the data front, U.S. The Product Purchasing Managers’ Index (PMI) was 62.6 lower than expected in June, while PMI Services was lower than expected at 64.8.
More U.S. data will be released later, including key durable goods orders for May, GDP for the first quarter, and early unemployment claims for the week.
The central bank will also release the results of its latest banking pressure tests later.
Across the Atlantic, the Bank of England will hand over its policy decision late. Manufacturing and services PMIs for June was better than 63.1 and 58, respectively, according to Eurozone data.
Germany’s manufacturing PMI for June was 64.9 ahead of the release of the country’s IPO trade climate index.
In the UK, production was better than PMI at 64.2, while PMI services were lower than expected at 61.7.
Per ounce of silver among other precious metals. 25.87, palladium 0.1% and platinum 0.5%.