By Gina Lee

Investing.com – Gold was up on Wednesday morning in Asia given the ongoing pressure from U.S. inflation. The gains were held back by the rising yield of U.S. treasuries and increasing expectations about U.S. Federal Reserve.

The dollar rose 0.03% to $1.828.45 at 11:45 ET (4:45 GMT) This is a normal move for the dollar that moves in the opposite direction to gold. The dollar edged lower on Wednesday

On Tuesday, the stock rose to 1.97%, an increase not witnessed since Nov. 2019.

Investors now await inflation data due on Thursday for more clues on the Fed’s timeline on interest rate hikes. The odds of the Fed raising interest rates in March 2022 are only one-in-three, according to markets.

Mary Daly, President of the San Francisco Fed, stated Tuesday that U.S. Inflation might rise before it gets better.

“Expectations of higher inflation are largely driving the move, as hawkish Fed’s stance is largely priced-in,” ANZ commodities analyst Soni Kumari told Reuters.

“The focus is on real rates, and although they are higher, they remain negative … so there is a bit of a push-and-pull here, where on the one hand, real rates are going up, which is gold-negative, but they still remain less attractive than gold,” DailyFX currency strategist Ilya Spivak told Reuters.

Across the Atlantic, European Central Bank’s president Christine Lagarde said on Monday that there is no need for extensive tightening as inflation is set to fall back and could stabilize, tapping down rising expectations of aggressive interest rate hikes.

Silver rose 0.4% in other metals while platinum and palladium fell 0.2%.