Gold Down, Investors Look to U.S. Inflation Data
By Administrator_ India
Gold was down on Tuesday morning in Asia ahead of U.S. inflation data that could hint at when the U.S. Federal Reserve could begin asset tapering.
Gold futures inched down 0.09% to $1,792.85 by 12:07 AM ET (4:07 AM GMT). The dollar, which usually moves inversely to gold, inched down on Tuesday after climbing to a two-week high on Monday.
The yellow metal is trading below the $1,800 mark as investors weigh risks from the COVID-19 Delta variant and elevated inflation.
Investors now await the U.S. consumer price index (CPI) data, due later in the day. If the number is higher than expected, expectations for when the Fed could start asset tapering could shift to November from December, according to Oanda Corp. senior market analyst Edward Moya.
“Gold prices are steadying as investors await the August inflation report, which could deliver some signs that inflation is transient. The Delta variant shock to supply chains will likely show some positioning for an upside surprise” for the CPI data, which could send gold lower, Moya said in a note.
The focus is also on the Fed’s next policy decision, due to be handed down next week.
Across the Atlantic, inflation in the euro area will “in all likelihood” ease as soon as 2022 but the European Central Bank is ready to act if it does not, ECB executive board member Isabel Schnabel said on Monday.
In the Asia Pacific, China is also due to release industrial production and retail sales data on Wednesday.
In other precious metals, silver and platinum edged down 0.1% while palladium rose 0.3%.
