Gold rose in Asia on Wednesday morning as signs of inflationary pressures wiped out its 2021 losses, leaving investors worried. The Federal Reserve promised a monetary policy perspective to investors.
The gold futures rose 0.48% to $ 1,907.10, surpassing $ 1,900, gaining eight points in the last nine sessions.
The dollar, which usually moves in the opposite direction to gold, goes to a four-and-a-half month low. During the previous session, U.S. Treasury yields fell to a two-week low of 1.56%.
Echoing the recent minutes of the central bank’s recent meeting, Central Vice President Richard Clarida said on Tuesday that the central bank may be ready to discuss the property buying recession.
“It might be nice … there will come a time in the coming meetings where we can start discussing how to reduce property purchases … it’s not going to be the center of the April meeting. Data flow,” he said.
“The weaker dollar is helping and the risks of inflation are more important now than ever. It’s about protection against inflation,” Stephen Innes, managing partner of SBI Asset Management, told Reuters.
“Even if inflation is high, they (the central bank) will be very bad. The most important thing for gold is the real pre-closing rates. The central bank will keep lower pre-closing rates, which will weaken the dollar, and gold will be good,” Innes added.
Across the Atlantic, European Central Bank policy analyst Yannis Stornarus has warned that as the region’s struggle against COVID-19 progresses beyond the release of vaccines, the central bank must fully open its concessions.
In the Asia-Pacific region, the Reserve Bank of New Zealand kept its interest rate unchanged at 0.25%.
On Tuesday, the U.S. The published data was also disappointing. The CB consumer confidence index for May read 117.2, with new home sales down to 863,000 in April.
“You missed the US data a bit, and bond yields are low … which helps gold. Gold today serves as a haven,” Bob Hepburn, a senior market strategist at RJO Futures, told Bloomberg.
U.S. Senate Republicans plan to release opposition to President Joe Biden’s $ 1.7 trillion infrastructure plan on Thursday, but one of their leaders said Tuesday that both sides were far apart.
Among other precious metals, palladium is 0.3% and platinum 0.8%, silver grade. Was 27.99.