Earlier this week, the U.S. announced a rate hike. Gold rose in Asia on Friday morning as investors digested mixed signals from Federal Reserve officials.
Gold futures rose 0.06% to 77,777.70 at 12:27. The dollar, which normally moves in the opposite direction to gold, fell on Friday but was lower than the two-month high of 92.408 reached in the previous week.
Two federal officials predicted the inflation could rise higher than expected in the short term. However, other federal policymakers said the U.S. economy was recovering from the fall of 2020, but the labor market still needed to improve.
U.S. Economic growth is “roaring again … but while GDP has fully offset its losses since last year, employment has fallen significantly,” said Philadelphia Fed President Patrick Harker.
U.S. President Joe Biden provided $ 579 billion in infrastructure investment with a bipartisan senators agreement.
U.S. 411,000 people filed for early unemployment in the data front, and the labor market is steadily recovering from COVID-19 as the economy reopens. Investing.com’s estimates put the number of claims at 380,000, up from 418,000 in the previous week.
Investors are now waiting for the key individual consumption expense (PCE) price index.
The central bank said inflation would be higher than 3% in the coming months, but the rise is expected to be intermittent and will not affect the current stimulus policy.
Among other precious metals, palladium is 0.1%, platinum 0.5%, and silver ounce. Was stable at 25.87.