Gold rose in Asia on Wednesday morning, with investors digesting mixed inflation data from China to the U.S. on Thursday.
Gold futures rose 0.12% to 89,896.65. The dollar, which usually moves in the opposite direction to gold, is the 10-year U.S. dollar. Treasury yields have been at an all-time low for more than a month.
Data released the day before shows that the Chinese Consumer Price Index (CPI) for May has shrunk by 0.2% per month and increased by 1.3% year on year. However, the Manufacturer Price Index (PPI) rose 9% year-on-year, exceeding expectations.
Elsewhere in Asia, South Korea’s unemployment rate rose to 3.8% in May, slightly higher than 3.7% in April.
The U.S. Investors are now looking to the U.S. for further clues about the Federal Reserve’s deadline to change its current dovish monetary policy. Waiting for the core CBI index data.
“The tight trading limits seen so far this month reflect a more cautious mood in the market than the inflation figure … While the central bank assures that this increase in inflation is temporary, policymakers should be on their toes to calm the market,” said city index senior financial market analyst Fiona Cincotta.
Across the Atlantic, investors are also focusing on the European Central Bank’s policy decision coming up on Thursday. Meanwhile, US world leaders, including President Joe Biden and German Chancellor Angela Merkel, are expected to attend the G7 summit in the UK on Friday.