By Gina Lee

Investing.com – Gold was down on Wednesday morning in Asia, over rising Treasury yields and the strengthening U.S. dollar.

The gold prices dropped by about 1% in the last session, and then fell again for May.

By 11:18 AM ET (03:19 GMT), they were down 0.4% to $1,839.50 The normal movement of the inversely to gold is shown as the, up Wednesday.

On Tuesday, the U.S. President Joe Biden met Jerome Powell, Chairman of U.S. Fed Reserve. They discussed historic inflation. Biden stressed that he respects the central bank’s independence but also affirmed a ahead of the November midterms.

In an effort to fight inflation, the Fed is going to begin shrinking its $8.9 Trillion balance and releasing it later in each day.

Investors are concerned that monetary tightening could lead to a recession. Many investors have priced in two interest rate increases of half-points each in June and July.

Shanghai released its locks on June 1, lifting hopes of economic recovery in Asia Pacific. The May data was released earlier today and recorded 48.1. This is higher than the 46 in April 2022, as well as a forecast of 48 by Investing.com.

Australia’s GDP grew and in the first quarter of 2022, according to data released earlier in the day.

Other precious metals fell by 0.67%. Gained 0.38%, and was slightly down by 0.11%.