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Gold Up, Investors Digest Smaller-Than-Expected RBNZ Rate Hike -Breaking

by Mike Robinson

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© Reuters.

By Gina Lee

Investing.com – Gold was up on Wednesday morning in Asia, as the strengthened and the announced a .

The dollar was up 0.54% at $1.793.45 (11:01 GMT) but it remained under the $1.800 mark. Although the normal movement of gold and dollars is inversely related, the dollar gained on Wednesday but was still below its 16-month peak.

RBNZ increased its interest rate from 0.75% to 0.75%. It also raised its long term cash rate projections by 50bps.

Governor Adrian Orr said at a news conference that the RBNZ would take a “cautious” approach to tightening by moving in 25 basis-point steps “for now.”

Investors are also hopeful that Jerome Powell (newly-renominated U.S. Federal Reserve chairman) will accelerate monetary tightening to stop ever-rising inflation.

Across the Atlantic, the U.K.’s was 58.2, and the was 58.6, in October. These higher-than-expected numbers could open the door for the Bank of England’s December interest rate hike.

SPDR Gold Trust reported that its holdings increased 0.6% from 985 to 991.11 tonnes on Monday, indicating sentiment.

Silver was 0.3% lower and palladium rose 1.2% in other precious metals. Platinum rose 1.1%. According to the World Platinum Investment Council, there will be a greater than expected surplus in the world platinum market in 2021. This is in addition to a large excess in 2022.

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