By Gina Lee

Investing.com – Gold was down on Thursday morning in Asia but remained near the one-week high hit in the previous session. After U.S. inflation data showed that an earlier interest rate increase was needed, Treasury and U.S. yields declined.

The dollar fell 0.07% to $1.826.05 at 11:18 ET (4:18 GMT) On Thursday, the dollar rose slightly, as it normally moves in an opposite direction to gold.

U.S. benchmark 10-year Treasury yields declined from their two-year peak reached earlier in the week.

Wednesday’s data showed that the U.S. core consumer price index (CPI) grew 0.6% and 5.5% in December. CPI increased 7%, which is the highest rate since 1982. It also grew 0.5%.

Later in the morning, the U.S. will be due.

Inflation readings that were higher than expected raised expectations for the U.S. Federal Reserve to raise interest rates at their March 2022 meeting. There will be three additional increases in the following year.

The Fed St. Louis president stated that there may be four rate hikes in 2022, despite high inflation. Separately, Raphael Bostic (atlanta Fed) and Loretta Mester (Fed Bank of Cleveland) both suggested interest rate increases of up to March 2022.

Thomas Barkin (Richmond Fed President), Patrick Harker (Peninsula Fed President) and Charles Evans (Chicago Fed President) will speak later that day. John Williams, the President of New York Fed will be speaking on Friday.

Later in the day, Lael Brainard’s nomination for Fed vice chair will be heard by the U.S. Senate Banking Committee.

Asia Pacific: The Asia Pacific Policy Committee will deliver its decision on Friday.

Meanwhile, Zimbabwean gold production rose by 55.5% in 2021, according to Wednesday’s data from the Reserve Bank of Zimbabwe.

The other precious metals saw silver and platinum rise 0.1% each, while palladium declined 0.2%.