Market News

Gold falls before US inflation data,

Gold fell in Monday morning trading in Asia. Concerns about the COVID-19 outbreak remain as countries such as Australia and South Korea reintroduced restrictive measures, while US inflation data and US Federal Reserve Chairman Jerome Powell’s testimony are due throughout the week.
Gold futures were also down 0.40% at $1,803.35 by 12:38 AM ET (4:38 AM GMT), but rose above the $1,800 mark.
Powell will also testify before the Senate Banking Committee on Wednesday and Thursday, with his testimony examined for any evidence of a timetable for deleveraging the assets. Investors are also awaiting the US Core CPI for June, due on Tuesday, and the Producer Price Index due later this week.
The Fed also said during the previous week that material shortages and “employment difficulties” were hampering the US economy’s recovery from COVID-19 and leading to a “temporary” bout of inflation.
In Europe, European Central Bank President Christine Lagarde said earlier in the day that the ECB will update its guidance on next monetary policy steps within ten days. She also hinted that a new policy could be introduced in 2022 to support the European economy.
While investors also digested a decision by UK regulator Prudential (NYSE: PUK) on Friday to “modify our approach to precious metals holdings related to deposit-taking and clearing activities”. The decision means that banks clearing gold deals in London can apply for an exemption from stricter capital rules set to apply from January 2022.
The finance ministers, meeting in Venice on Saturday, also said that COVID-19 remained on investors’ radars, as the latest outbreaks involving the delta variant of the virus in some countries and the unfair access to vaccines were threats to the global economic recovery.
Also, the demand for physical gold in India, in addition to other centers, weakened during the past week with the increase in the price of the yellow metal. Data from the US Commodity Futures Trading Commission also said speculators raised their net long positions in gold and silver on the Comex in the week ending July 6th.
Among other precious metals, silver rose 0.6%. Palladium rose 0.1 percent, while platinum fell 0.1 percent.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button