By Gina Lee
Investing.com – Gold was down on Tuesday morning in Asia on the back of a slight rebound in the U.S.’ benchmark 10-year Treasury yield and the dollar ahead of U.S. inflation data later in the week.
Gold futures inched down 0.04% to $1,836.85 by 13:02 AM ET (5:02 AM GMT).
The dollar, which normally moves inversely to gold, inched up on Tuesday a day ahead of the release of U.S. inflation data for April, including the core consumer price index (CPI). Meanwhile, 10-year Treasury yields remained below 1.6%.
The U.S. Federal Reserve will not consider changing its dovish monetary policy until they see higher inflation, wage increase, and strong employment rates with an average of 1 million jobs created, said Chicago Fed Bank President Charles Evans on Monday.
More Fed officials, including Governor Lael Brainard, will speak throughout the week. In the U.K., Bank of England Governor Andrew Bailey will speak on Wednesday.
In Asia, the Bank of Japan warned that the uncertainty of Japan’s economic recovery from COVID-19 could overshadow its service consumption and the government needs to take stimulus measures to support its economy, according to a summary of an April policy meeting.
China also released its inflation data for April earlier in the day. The CPI contracted 0.3% month-on-month but grew 0.9% year-on-year, both slightly below expectations. The Producer Price Index (PPI) grew a better-than-expected 6.8% year-on-year.
In other precious metals, palladium edged down 0.2%, platinum fell 0.4%, while silver was little changed at $27.31 per ounce.