Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Down, Ahead of U.S. Inflation Data

Published 11/05/2022, 04:22
Updated 11/05/2022, 04:22
© Reuters.

© Reuters.

By Gina Lee

Investing.com – Gold was down on Wednesday morning in Asia, hitting its lowest level since February 11, as investors eyed the rising dollar and inflation data.

Gold futures were down 0.22% to $1,836.96 by 11:06 PM ET (3:06 AM GMT).

The Dollar, which normally moves inversely to the gold, inched down on Wednesday morning, but the moves were small. The tightened policy to fight inflation from the U.S. Federal Reserve has fueled five weeks of gains for the dollar.

The Fed raised its interest rates to 1% last week. Fed officials on Tuesday reiterated their stance on the aggressive efforts to slow the fastest inflation in 40 years.

“I know that families all across America are hurting because of inflation,” U.S. President Joe Biden said in a speech a day before the Consumer Price Index (CPI) came out.

“I want every American to know that I am taking inflation very seriously and it is my top domestic priority.”

As investors expect additional increases of the same magnitude from the Fed, they await the U.S. Core CPI, due later in the day, for more clues on the Fed’s monetary policies. The forecasts prepared by Investing.com expected the figure to moderate but stay above 8%.

In Asia Pacific, Australia’s consumer sentiment released on Wednesday fell 5.6% in May from April, according to the Westpac-Melbourne Institute index. Surging inflation and rising interest rates are weighing on household spending.

In other precious metals, silver dipped 0.1%. Platinum edged up 0.1%, while palladium fell 1.2%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.