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Gold Down on Higher U.S. Treasury Yields Ahead of U.S. Inflation Data -Breaking


© Reuters.

Zhang Mengying – Gold was down on Friday morning in Asia as U.S. Treasury yields rose, with investors looking to U.S. inflation data for more clues on the interest rate hikes path of the U.S. Federal Reserve.

They were at $1,846.85 (11:20 ET) (3:20 GMT) and down 0.2% On Thursday morning, the, which moves in an opposite direction to gold, slowed.

Benchmark edged up, denting demand for zero-yield gold.

On Thursday, The Federal Reserve declared that it will increase its interest rates by quarter-point in July. They also proposed a higher hike in the Fall to combat long-lasting high inflation. Inflation in the eurozone is now higher than 8%. The ECB announced that they will stop buying net assets on July 1, 2022.

Investors now focus on the Fed and how aggressive they will raise interest rates.

The U.S. rose to its highest point in almost five months last week, indicating that there was still a tight job market.

Asia Pacific saw its slowest growth in 14 months, reaching 5.4% in May. The official data was released earlier today and showed that in May the rate of growth in Asia Pacific rose by 6.4%, while it increased 8.0% in April. 

Other precious metals fell by 0.74%. It fell by 0.45% and gained 0.5%.