By Gina Lee

Investing.com – Gold was up on Tuesday morning in Asia, but remained near its lowest level in more than two weeks. Bets on quicker-than-expected interest rate hikes increased after U.S. President Joe Biden incumbent Federal Reserve Chairman Jerome Powell to a second term.

After falling 2.1% on Monday, the dollar edged up 0.1% to $1808.03, at 11:31 ET (4:31 GMT). Although the US dollar moves in an opposite direction to gold and is usually close to its highest level for 16 months, it gained on Tuesday.

Biden appointed Powell to a fourth-year term Monday, replacing Lael Brainard who was elevated to Fed vice chair. Both Powell and Brainard’s roles will need to be confirmed by the Senate.

“There isn’t going to be any sudden hawkish shift due to the nomination, but a continuation to current policy with a quicker asset tapering tabled by officials last week,” SPI Asset Management managing partner Stephen Innes told Reuters.

Investors continue to watch the increasing number of COVID-19-related cases throughout Europe. Francois Villeroy, de Galhau (Governor of the Bank of France) said Monday that the Bank of France will still begin asset tapering by March 2022 despite the high level of inflation and the return of cases.

Innes said that the COVID-19 recovery in Europe could cause central banks in Europe to reverse rate-hike expectations. However, there is still a need for gold within this environment.

In Asia Pacific, China should avoid “campaign-like and aggressive” economic measures even as the economic recovery from COVID-19 faces new downward pressures, said Premier Li Keqiang.

The policy decision of the Board will be announced on Wednesday. A day later, it will announce its next steps.

The other precious metals saw silver and platinum rise 0.4% and palladium jump 1.3%.