Gold rose in Asia on Wednesday morning, but last month the U.S. Data on Tuesday showed consumer prices hitting a 13-year high, with yellow metal gaining ground.
Gold futures rose 0.21% to $ 1,813.65. The dollar, which normally moves in the opposite direction to gold, fell on Wednesday and remained stable after seeing its best daily percentage gain in almost a month during the previous session.
The U.S. The key consumer price index (CPI) was 0.9% higher than expected in June, the highest level in 13 years. COVID-19- Inflation worries are expected to remain the same if supply barriers and revisions in travel-related services costs continue from depressing levels.
The focus of investors is now on the U.S. The testimony of Federal Reserve Chairman Jerome Powell shifts to any indications that the central bank will start tapping assets and raising interest rates later in the day before Congress. Powell has so far insisted that high inflation will be a temporary phenomenon.
A senior White House official said on Tuesday that supply chain pressures, which trigger high inflation, were expected to be “not far off in the future,” but did not say when.
Meanwhile, the Reserve Bank of New Zealand has kept its interest rate unchanged at 0.25%, while surprising markets by saying it will suspend its large-scale asset-purchase program from next week. Bank of Korea and Bank of Japan will hand over their respective results on Thursday and Friday.
In the wake of COVID-19, many countries have tightened control measures as the number of cases related to the virus’ delta variation has increased. Australia extended the lockout currently in place in Sydney for another two weeks, while South Korea tightened social remote controls in most parts of the country after hitting a new record of 1,615 daily cases on July 14.
Among other precious metals, silver. 25.9 and palladium and platinum 0.1%.
