Gold ease, Dollar surge as Investors Expects Key U.S. Inflation Data

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In Asia on Thursday morning, gold was lower, while the US currency and Treasury yields were rising. Investors are now waiting for inflation statistics from the United States, which could provide insight into the Federal Reserve’s next policy move.

By 10:56 p.m. ET, gold futures were up 0.66 percent to $1,671.75 per ounce (3:56 AM GMT). On Thursday, the dollar edged higher against gold, which usually goes in the opposite direction.

Benchmark 10-year Treasury rates remained near their highest level since November 29, which was reached following a 10-year note auction on Wednesday. On Friday, the United States will release data, including the consumer price index (CPI).

Investors also absorbed Wednesday’s JOLTs job openings figure, which rose to 11.033 million in October from 10.033 million in September.

Reduced hiring, on the other hand, indicates a worsening labor shortage. On the other side of the Atlantic, European Central Bank vice president Luis de Guindos said on Wednesday that while inflation in the Eurozone will take longer to return to target than previously assumed, there is no evidence that high prices are getting embedded in wages.

The Federal Reserve, the European Central Bank, and the Bank of England are all expected to make policy announcements next week.

Meanwhile, China’s producer price index increased 12.9 percent year over year, according to statistics released earlier in the day.

In November, the CPI increased by 2.3 percent year over year and 0.4 percent month over month. Silver and platinum were down 0.2 percent, while palladium was up 0.4 percent among other precious metals.

Story by : Norvisi Mawunyegah