Gold down as dollar recovers, investors await U.S. data
Gold dropped on Monday in Asia amid the dollar’s continuous recovery. Investors are now waiting for U.S. data to look for clues on the U.S. Federal Reserve’s timeline for asset tapering.
Gold futures edged down 0.10% to $1,790.35 by 12:39 PM ET (4:39 AM GMT), after taking a 2.1% weekly decline. The dollar, typically moving inversely to gold, rose on Monday.
Investors are looking to the U.S. consumer price index, due on Tuesday, following Friday’s data that showed August’s producer price index (PPI) went up 0.7% month-on-month and 8.3% year-on-year. The core PPI climbed up 0.6% and 0.7% month-on-month and year-on-year, respectively.
In India, demand for physical gold declined during the previous week in spite of a correction in bullion prices. Consumers in other Asian hubs also kept hushed as they sit out for a clearer trend in global prices.
In other precious metals, silver remained steady at $23.72. Platinum dipped 0.1% to $955.01, while palladium fell to its lowest levels since August 2020 but recovered to trade up 0.3%.