Jun 07, 2022 11:11PM ET
By: AnalysisWatch
Gold prices were down in Asia Wednesday morning as investors waited for the U.S. Consumer Price Index (CPI) to provide further evidence of a rate hike.
Gold futures were down 0.05% at $1,851.05 by 11:01 PM ET, while the dollar, which normally moves in the opposite direction to gold, edged higher on Wednesday morning.
U.S. Treasury Secretary Janet Yellen said Tuesday that inflation could remain high, and the Biden administration is likely to raise the inflation forecast of 4.7% for this year in its budget proposal.
Yellen stated that gold transactions involving Russia may be sanctioned, and that any attempts to circumvent US sanctions using gold will be closely monitored.
Monetary policy remains on investors' radar. They are now waiting for Friday's CPI data, which should provide insight into the path of interest rate hikes.
The World Bank lowered its forecast for global growth this year to 2.9% from 4.1% in January as concerns about inflation, supply disruptions, and higher interest rates persist.
In the Asia-Pacific region, Japan's economy exceeded expectations in the first quarter: the country's gross domestic product (GDP) contracted 0.5% year over year in January-March, below the preliminary 1.0% figure released last month.
The Reserve Bank of Australia raised interest rates to 0.85% on Tuesday.
In other precious metals, silver slipped 0.12%. Platinum fell 0.28%, while palladium rose 0.74%.