Gold Up, Investors Await Inflation Data
2022.05.10 08:20
By Gina Lee
Investing.com – Gold was up on Tuesday morning in Asia over the weakening dollar. Investors now await inflation data.
Gold futures were up 0.24% to $1,863.89 by 12:50 AM ET (4:51 AM GMT).
The dollar, which normally moves inversely to gold, inched down on Tuesday morning. 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 first half-point rate hike, while the Bank of England also raised its interest rate to 1% as it handed down its policy decision on Thursday, the highest since 2009.
The prospect of aggressive interest rate hikes pushed the U.S. 10-year Treasuries to climb as high as 104.19 overnight, a 20-year peak.
As investors expect additional increases of the same magnitude from the Fed, Atlanta Fed President Raphael Bostic said on Monday that he sees no 75-bps rate hike, as there are some signs of inflation cooling.
In the Asia Pacific, trade data from China on Monday showed that the exports in April grew 3.9% year on year, the slowest pace since June of 2020. The lockdown measures for COVID-19 have caused damage to the trade.
Now investors await investors now await U.S. Core Consumer Price Index (CPI) on Wednesday, as well as the U.S. Producer Price Index and initial jobless claims, which are due on Thursday.
In other precious metals, silver jumped 0.99%, platinum gained 0.58% while palladium rose 2.18%.
