Significant change in the price of gold after an important statement? by Investing.com

Written by Gina Lee

Investing.com – Early morning trading in Asia was up on Wednesday, and data was released Tuesday showing U.S. consumer prices rose the most in 13 years last month, capping the gains of the yellow metal.

It also rose 0.21% to $ 1,813.65 at 1:16 am ET (5:16 GMT). While the dollar, which generally moves the opposite way with gold, fell on Wednesday, flat after registering its best percentage daily gain in nearly a month in the previous session.

Lily:

The United States also rose 0.9% m / m higher than expected in June, with consumer prices rising the most in 13 years. Inflationary concerns are expected to persist, with continued supply constraints and costs for travel-related services rebounding from low levels due to COVID-19.

As investors’ attention now turns to later today for clues as to when the central bank will start cutting assets and raising interest rates, so far Powell has insisted the fact that high inflation will be a temporary phenomenon.

Lily:

A senior White House official said on Tuesday that the supply chain pressures fueling rising inflation are expected to ease in the “not distant future,” but did not specify when.

Meanwhile, the Reserve Bank of New Zealand kept its interest rate unchanged at 0.25% while surprising the markets by saying it would stop its large-scale asset purchase program from next week. The Bank of Korea and the Bank of Japan will also release their own decisions on Thursday and Friday.

On the COVID-19 front, many countries have tightened restrictive measures with an increase in cases involving the delta variant of the virus. Australia extended the lockdown currently in place in Sydney for two more weeks, while South Korea tightened social distancing restrictions in most parts of the country after setting a new record of 1,615 daily cases on the 14th. July.

As for other precious metals, it stood at $ 25.9, while platinum rose 0.1%.

Update

In the meantime, the results have appeared, and the index registered 5.6%, up from the estimate of 5.1% and the previous reading, which was 4.8%, on an annual basis. On a monthly basis, the producer price index recorded was 0.6%.

It is reported that Yesterday, the United States rose more than expected by 0.9% m / m in June, with the highest gain in 13 years at 5.4%.

We recorded at these times 1828, an increase of 1% at these times, and this rise in the price of gold is supported by high inflation which could push the Federal Reserve to tighten its monetary policy earlier than announced.

This should cast a shadow over what is expected in front of the US Congress, in which the market waits for Powell to reveal the Fed’s monetary policy intention in the coming period, and when to cut back its purchases of bonds, which are estimated at $ 120 billion.