Gold Down, Investors Await U.S. Economic Data to Get Better Inflation Picture By Investing.com

© Reuters. By Gina Lee Investing.com – Gold was down on Thursday morning in Asia as investors await U.S. economic data to gauge inflationary pressures further. A strengthening also put a dent in the yellow metal’s appeal. were up 0.45% to $1,775.35 by 12:11 AM ET (4:11 AM GMT). The dollar, which usually moves inversely



© Reuters.

By Gina Lee

Investing.com – Gold was down on Thursday morning in Asia as investors await U.S. economic data to gauge inflationary pressures further. A strengthening also put a dent in the yellow metal’s appeal.

were up 0.45% to $1,775.35 by 12:11 AM ET (4:11 AM GMT). The dollar, which usually moves inversely to gold, inched up on Thursday to a near 11-week high.

Investors also digested the most recent comments from U.S. Federal Reserve officials. Dallas Fed President Robert Kaplan said that the economy will likely meet the Fed’s threshold for tapering earlier than expected, after previously predicting an interest rate hike in 2022, However, his counterpart in Atlanta, , said the Fed could slow down the process over the next few months.

The Fed has recently sought to calm investor concerns after handing down an unexpectedly hawkish policy decision during the previous week. Officials, including Fed Chairman Jerome Powell, stressed that the central bank would retain a loose monetary policy, but have added that a gradual withdrawal of emergency support could happen in the months ahead.

Although gold is widely viewed as a hedge against inflation, a Fed interest rate hike will increase the opportunity cost of holding it.

On the data front, the U.S. was a better-than-expected 62.6 in June, while the was lower than expected at 64.8.

Further U.S. data, including for May, the for the first quarter and for the week, will be released later in the day.

The Fed will also release the results from its later in the day.

Across the Atlantic, the will also hand down its policy decision later in the day. Eurozone data said that and for June were a better-than-expected 63.1 and 58 respectively.

Germany’s for June was a better-than-expected 64.9 ahead of the release of the country’s later in the day.

In the U.K., the was a better-than-expected 64.2, while the was lower than expected at 61.7.

Silver was steady at $25.87 per ounce in other precious metals, palladium inched down 0.1% and platinum gained 0.5%.

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