By Gina Lee

Investing.com – Gold was up on Monday morning in Asia, clawing back gains from the prior session’s losses. U.S. Federal Reserve chief Jerome Powell’s view that inflation could ease in 2022 and the central bank was on track to begin asset tapering soon had contributed to the downward trend.

By 11:59PM ET (3:59 GMT), the climbed 0.6% to $1.799.01 Although the inversely related to gold is a common trend, Monday’s trough saw the. The greenback remained steady despite its largest weekly drop in over a month and added pressure on the yellow metal.

Gold had rallied to its highest since early September 2021 on Friday, before giving up some gains on Powell’s comments on asset tapering. At a panel discussion on Friday, Powell stated that inflation may persist longer. The Fed could start asset tapering shortly but continue to hold off on raising interest rates as long as the unemployment rate is low.

The U.S. Treasury Secretary stated that the U.S. is not losing control over inflation and could restore normality by 2022’s second-half.

Investors will also be waiting to see the policy announcements from the (ECB) and on Thursday. Although neither central bank is expected to change policy, market indicators suggested higher inflation than the ECB’s guidance.

According to U.S. Commodity Futures Trading Commission data, speculators reduced their net gold long positions during the week ending Oct. 19.

Silver was steady at $24.31 an ounce in other precious metals. Platinum rose 0.1% while palladium rose 0.7%.