Gold up as central banks increase holdings
Gold was up in Asia on Monday morning following some central banks’ increase in their gold holdings. Meanwhile, investors still wait for further US economic data for more clues as to the central bank’s monetary policy.
Gold futures rose 0.24% to $1,787.55 by 10:39 PM ET (2:29 AM GMT).
With regards to demands, central banks including Serbia, Thailand, and Ghana are increasing their gold holdings due to signs of accelerating inflation.
In the US, data released on Friday showed that the nonfarm payrolls went up by 850,000 in June owing to rising wages and more incentives.
Investors now turn to other economic data and the US Federal Reserve’s next move for possible hints on the US’ economic recovery from COVID-19 as the country faces concerns over continuing inflation.
Meanwhile, in Asia, Japan’s services sector activity declined for the 17th consecutive month in June as COVID-19 handicapped demand at home and abroad.
In India, gold was sold at a premium for the first time last week in over two months. Demands for the yellow metal went up after the country slightly eased its COVID-19 restrictions.
Going over other precious metals, silver and platinum dipped 0.2% and 0.3%, respectively, while palladium went up 0.3%.