Gold up amid US’ higher-than-expected inflation
Gold was up on Wednesday morning in Asia, despite having its gains dampened by data released on Tuesday that showed US consumer prices rose to their highest in the last 13 years.
Gold futures rose 0.21% to $1,813.65 by 1:16 AM ET (5:16 AM GMT) while the dollar, which normally moves inversely to gold, tumbled on Wednesday before steadying as it experienced its best daily percentage gain in almost a month during the previous session.
The US core consumer price index (CPI) went up 0.9%, higher than the expected month-on-month in June. As supply tightens and the costs of travel-related services continue to bounce back from the COVID-19 levels of depression, inflationary concerns are expected to remain.
Investors now turn their attention to US Federal Reserve Chairman Jerome Powell’s testimony before Congress for hints on when the central bank will begin asset tapering and raising interest rates. Powell has until now insisted that higher inflation would be a temporary phenomenon.
A senior white house official stated on Tuesday that the supply chain pressures that are spurring the higher inflation rate are expected to go down in the “not-so-distant future”. However, the official did not specify when.
Going over to other precious metals, silver remained at $25.9 while palladium and platinum crept up 0.1%.