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

Gold Up As Uncertainty of Inflation Remains

Published 25/05/2022, 02:12 pm
Updated 25/05/2022, 02:12 pm
© Reuters

© Reuters

By Gina Lee

Investing.com – Gold was up on Wednesday morning in Asia, with inflation's uncertain path giving the yellow metal a boost.

Gold futures were up 0.26% to $1,860.30 by 11:39 PM ET (3:39 AM GMT). The dollar, which normally moves inversely to gold, inched up on Wednesday after falling to a one-month low in the previous session.

Benchmark U.S. 10-year Treasury yields also firmed after a drop during the previous session to a one-month low.

“Investors are struggling with how to assess the landing path of inflation now that peak inflation is behind us. The question for the market is how long it will take to normalize, and that uncertainty is helping gold,” SPI Asset Management managing partner Stephen Innes told Reuters.

The U.S. Federal Reserve is fighting against 40-year-high inflation and considering a string of big interest-rate hikes. Fed Bank of Atlanta President Raphael Bostic, one of the central bank’s dovish policymakers, urged the Fed to tighten policy with care and avoid “recklessness” in an essay he wrote and published by his bank on Tuesday.

“Gold investors notice the softer change in the Fed language, and dips to $1,850.00 are met with solid support,” Innes at SPI Asset Management told Reuters.

Investors are now awaiting the minutes from the last Fed meeting, due later today, for more policy hints.

In the Asia Pacific, the Reserve Bank of New Zealand raised the interest rate from 1.5% to 2.0% as Investing.com expected. The Bank of Korea will release its policy decision on Thursday.

In other precious metals, silver dipped by 0.2%. Platinum inched up 0.1, while palladium declined 0.5%.

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.