By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia against a firmer dollar, as investors await U.S. data to get further signals on the inflation level and economic recovery from the COVID-19 pandemic.
Gold Futures were down 0.35% to $1,888.95 by 11:23 PM ET (3:23 AM GMT). The dollar, which usually moves inversely to gold, inched up while the benchmark 10-year U.S. Treasury yields slid below 1.50% for the first time since May 7.
Investors now await U.S. data, including the core consumer price index in May and initial jobless claims , due later in the day, to get further clues on the U.S. economic growth and the direction of the U.S. Federal Reserve’s monetary policy.
"A significant upside surprise in inflation could tilt the Fed taper discussion to sooner rather than later, though the majority would still be looking for substantial progress toward maximum employment before considering tapering." So far though, "the market is buying into the Fed's view that the rise in prices is transitory and the Fed will not alter its policy guidance at next week’s FOMC meeting," ANZ economists said in a note.
Across the Atlantic, the European Central Bank’s policy decision will hand down its policy decision later in the day. The central bank will maintain its current stimulus measures in case higher borrowing costs could block a still nascent economic recovery from the COVID-19 pandemic.
Meanwhile, the Group of Seven (G7) leaders’ summit will start in Cornwall on Friday.
In other precious metals, silver inched down 0.1%, platinum edged down 0.2%, while palladium was steady at $2,777.69.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Nice insightful information, thanks.Like 0