© Reuters
By Gina Lee
Investing.com – Gold was up on Wednesday morning in Asia, uncertainty of inflation gave the yellow metal a boost.
Gold futures were up 0.26% to $1,860.30 by 11:39 PM ET (3:39 AM GMT). The dollar, which normally moves inversely to gold, inched up on Tuesday after falling to a one-month low in the previous session.
Benchmark U.S. 10-year Treasury yields also firmed after a drop in the previous session to a one-month low.
“Investors are struggling with how to assess the landing path of inflation now that peak inflation is behind us. The question for the market is how long it will take to normalize, and that uncertainty is helping gold,” SPI Asset Management managing partner Stephen Innes told Reuters.
U.S. Federal Reserve is fighting against 40-year-high inflation and considering a string of big interest-rate hikes. Fed Bank of Atlanta President Raphael Bostic, one of the central bank’s dovish policymakers, urged the Fed to tighten policy with care and avoid “recklessness” in an essay he wrote and published by his bank on Tuesday.
“Gold investors notice the softer change in the Fed language, and dips to $1,850.00 are met with solid support,” Innes at SPI Asset Management told Reuters.
Investors are now awaiting the minutes from the last Fed meeting, due later today, for more policy hints.
In the Asia Pacific, the Reserve Bank of New Zealand raised the interest rate from 1.5% to 2.0% as Investing.com expected. The Bank of Korea will release its policy decision on Thursday.
In other precious metals, silver dipped by 0.2%. Platinum inched up 0.1, while palladium declined 0.5%.
Source: Investing.com
