Shocking US data and gold is on the move By Investing.com

Written by Gina Lee

Investing.com – It was up Tuesday morning in Asian trading. However, rising and rising yields have limited the gold’s gains, and investors are waiting for more clues from U.S. Federal Reserve officials on when to start cutting asset purchases and raising interest rates. ‘interest.

It also rose 0.03% to $ 1,752.45 at 11:02 p.m. ET (3:02 GMT). The dollar, which generally moves upside down with gold, rose on Tuesday.

The US 10-year benchmark yield briefly exceeded 1.5%, a level not seen since June 2021 in the previous session. The two-year yield also hit its highest level since March 2020.

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U.S. Treasury Secretary Janet Yellen will join the Federal Reserve Senate chair later today, with the House Financial Services Committee hearing two days later. Powell said in prepared remarks that the Fed will act against runaway inflation if necessary.

Other precious metals were also in bearish trends on Tuesday, down 0.8% and platinum 0.5% by 0.6%.

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Update 3:30 p.m. Riyadh time

The data has been released and recorded a deficit of -87.60 billion more than the previous detection of 86.82 billion.

Gold is now at $ 1,735.46 per ounce, down 0.81%, and gold contracts are at $ 1,729.35 per ounce, down 1.29%. In contrast, the dollar index recorded 93.70, an increase of 0.33%.

Gold is awaiting comments from Jerome Powell during his testimony before the Senate Banking Committee. Gold has fallen sharply since Powell exposed the impending tightening of monetary policy, under pressure from the strength of the dollar and rising US Treasury yields.

Update 5:00 p.m. Riyadh time

It fell to 109.3 when it was expected to reach 114.5 points. It was also negative for L, who scored -3, trailing the previous score by 9 points.

And gold now registers 1,732.78, down 1%, and for gold contracts, it is down to 1,732.7, down 1.12%.

As for the US dollar index, which measures the strength of the currency against a basket of six foreign currencies, it now stands at 93.76, an increase of 0.39%.

“As the economy reopens, bottleneck pressures and other constraints persist and become greater than expected, the risks of higher inflation increase,” said Powell.

As stated in the certificate. Although these effects are longer than expected, they will eventually pass as they are supposed to, and inflation is supposed to come down to the 2% target in the long run.

If price pressures continue to be lasting, this will be a real concern and the Fed will use the tools at its disposal to keep inflation at current levels in line with the Fed’s targets.

And in the job market, the Fed chairman is expected to say that what is linked to the epidemic and hampering the progress of the labor market, such as healthcare and concerns about the Corona virus, “will fade to as the virus continues to be contained. “

Powell opposes the Secretary of the Treasury because he believes the road to full employment is still long in coming.

However, Powell believes the US economy is capable of tightening.