Written by Gina Lee
Investing.com – It was Wednesday in early Asian trading, just before and. Both minutes and statements will be analyzed on indications for the central bank’s schedule.
It also rose 0.18% to $ 1,762.55 at 21:47 ET (1:47 GMT).
Inflationary pressures are taking longer than expected, according to Atlanta Fed President Rafael Bostic, and the rally should not be called a thing. Meanwhile, Vice President Richard Clarida said the conditions needed for the Fed to start applying in asset purchases “are not all met.” Clarida’s comments raised expectations that the Fed will begin reducing asset purchases as planned in November 2021.
The global economy is worried about the possibility of an inflationary recession due to the economic problems due to the effects of the Corona virus, the rise in the price of energy materials and the crisis in Europe and America, and this helped the purchasing concentrations on gold last to increase week, so the strong rise in inflation data may be a starting point for gold. With increasing global inflationary pressures, price markets in significant rate hikes, betting for the most part that monetary policy will tighten sooner and faster than currently indicated. The global economic recovery of COVID-19 may be hampered by a continuing supply chain crisis and inflationary pressures, according to the International Monetary Fund, as growth forecasts for the United States and other major industrial powers have fallen.
The U.S. employment index reached 10.44 million in August, a record high indicating a tight labor market.
As for news about precious metals, both stood 0.1%, while platinum decreased 0.1%.
Update at 15:45 Riyad time
Gold did not benefit from the negative US inflation data and the rise in the monthly consumer price index from last month, but gold lost its profit and went back to more than 1% before the data a few minutes ago came.
It registered 4.0%, while it was expected to remain at 4.0% levels. While it came in at 0.2%, the estimate was 0.2%, but it went up from the previous month, when it registered an increase of only 0.1%.
As for the annual total, it has gone up to 5.4%, and experts had expected it to reach 5.3%, and therefore it stood at 0.4%, and the estimate would stand at 0.3%.
The petrol price index rose 1.2% last month, the lowest reading since May, while food prices rose 0.9% over the same period, compared with a 0.4% increase in August.
Gold is now trading at $ 1,759.9 an ounce, marginally down, after losing its profit because its price before the data reached $ 1,775.45 an ounce, an increase of 0.87%.
As for gold contracts, it recorded 1761.80, an increase of 0.1%, after losing its profit, which amounts to an increase of 1.01%, and its price reached $ 1776 an ounce before the release of the data.
Update at 17:00 Riyad time
For the second time, gold is returning to rise after falling to inflation data, and this rise comes as a response to the violent decline that the realities of.
While the yield on the 10-year treasury bond fell by 2.63% to 1,538.
As for the yield on 30-year treasury bonds, it also fell by 3.05% to 2,041.
Gold now runs at 1.37% to record 1784.28%, while gold contracts record 1786.05%, an increase of 1.5%.
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