Gold up amid US’ higher-than-expected inflation

14.07.2021 - Evdokimov Roman
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%.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?