Home > World Business
Gold Steady In Asia With Traders Digesting Cooling US Inflation
August 11th, 2022 | 11:56 AM | 555 views
ASIA
Gold was steady in Asia as investors digested the impact of cooler inflation in the US on the Federal Reserve’s monetary tightening path.
Bullion initially jumped on Wednesday after the US consumer price index decelerated by more than expected in July -- suggesting the Fed could be less aggressive in raising interest rates -- but ended up 0.1% lower. Some traders pared bets on tightening, with a half-point rate increase being re-established as the likeliest outcome next month, as opposed to another three-quarter point hike.
Still, two Fed officials responded to the softening inflation by saying it doesn’t change the US central bank’s path toward even higher interest rates. Minneapolis Fed President Neel Kashkari said Wednesday that he wants the benchmark rate at 3.9% by the end of this year and at 4.4% by the end of 2023, adding that it wasn’t realistic to conclude the Fed will start cutting early next year.
His counterpart in Chicago, Charles Evans, said inflation remains “unacceptably high” and that he expects “that we will be increasing rates the rest of this year and into next year to make sure inflation gets back to our 2% objective.”
Spot gold declined 0.1% to $1,790.25 an ounce as of 8:40 a.m. in Singapore. Prices rose as much as 0.8% to $1,807.93 on Wednesday, the highest level since July 5. The Bloomberg Dollar Spot Index was flat after dropping 1% in the previous session. Silver and palladium were little changed, while platinum edged higher.
Source:
courtesy of BLOOMBERG
by Ranjeetha Pakiam
If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]