Gold fell in Asia on Friday morning but advanced for the fourth week in a row. The U.S. has warned that any inflation will be intermittent and that the central bank will continue to support the economy. The yellow metal was elevated at the urging of Federal Reserve Chairman Jerome Powell.
Gold futures were down 0.05% at $ 1,828.10, but have risen 1.2% so far this week. The dollar, which normally moves against gold, fell on Friday.
Powell’s remarks came during his second day of testimony before the House of Representatives Financial Services Committee on Thursday, where he pledged “strong support” for US economic recovery from COVID-19.
However, investors widely expect the central bank to launch assets by the end of 2022. Some have predicted interest rate hikes before 2022, but have acknowledged that recent COVID-19 eruptions involving the delta variant are the biggest economic risk.
In Asia, the Bank of Japan (BOJ) left its yield curve (YCC) target unchanged at -0.1% for short-term interest rates and 0% for 10-year bond yields. Day.
Investors continue to digest GDP in the second quarter from China, the leading consumer of gold. As higher raw material costs and new COVID-19 eruptions lead to slower growth, there is the growing expectation that policymakers will have to do more to support the economic recovery.
Meanwhile, Barrick Gold (NYSE: GOLD) Corp on Thursday reported its second-quarter gold production fell 5.4% from the previous quarter. The U.S. Planned maintenance strikes at the Nevada gold mine in and the Pueblo Vizo in the Dominican Republic contributed to the decline.
Among other precious metals, silver is flat and palladium is up 0.1%, while platinum is down 0.1%.