© Reuters.
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.
Gold futures edged up 0.16% to $1,799.01 by 11:59 PM ET (3:59 AM GMT). The dollar, which usually moves inversely to gold, edged down on Monday. However, the greenback steadied from its steepest weekly loss in more than a month, thus applying further pressure to 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. Inflation could persist for longer, and the Fed could begin asset tapering soon but remain patient on interest rate hikes as employment was still low, he said at a discussion panel on Friday.
However, U.S. Treasury Secretary Janet Yellen said on Sunday the U.S. was not losing control of inflation, which could return to normal by the second half of 2022.
Investors also await policy decisions from the Bank of Japan and the European Central Bank (ECB), both due on Thursday. Although neither central bank is expected to change policy, market indicators suggested higher inflation than the ECB’s guidance.
Speculators cut their net long positions in gold in the week to Oct. 19, according to data from the U.S. Commodity Futures Trading Commission data released on Friday.
In other precious metals, silver was flat at $24.31 per ounce. Platinum inched up 0.1% and palladium rose 0.7%.
Source: Investing.com
