Gold Down as Dollar Strengthens, but Continuous Inflation Concerns Cap Losses By Investing.com
By Gina Lee
Investing.com – Gold was down on Tuesday morning in Asia, while the strengthened, even as continuing inflation concerns saw the yellow metal trade close to a more than one-week peak hit during the previous session.
They were at $1,760.10 (11:50 ET) by 3:50 GMT, down 0.422% after rising to $1.770.41 on Monday, which was its highest level since Sept. 23rd. Normally, the dollar moves in the opposite direction of gold. However, Tuesday saw a slight increase.
U.S. trade rep Katherine Tai said Monday that some Chinese imports were exempted from the tariffs placed by Donald Trump. She also called for “frank” talks with China over its failure to keep promises made in the Trump-era trade deal and its industrial policies.
Separately the U.S. President Joe Biden warned the country that it could exceed the $28.4 Trillion debt ceiling and enter into an historic default, unless Republicans vote in the coming weeks to increase the limit.
On Monday, the U.S. released data that showed an increase of 1.2% in August month-on–month.
In Asia Pacific, Indian gold imports soared 658% in September from 2020’s lower base, with a correction in local prices encouraging jewelers to increase purchases ahead of the upcoming festive season, a government source told Reuters.
The also handed down its policy decision earlier in the day, at 0.10%. Tuesday will see the Reserve Bank of New Zealand announce its decision, followed by two days later by Reserve Bank of India.
The other precious metals saw silver and platinum fall 0.6% and 0.7% respectively. Meanwhile, palladium fell 0.2% to $1900.58.
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