Title: Gold Down, as Central Banks Take Aggressive Stance Against Inflation
Jun 30, 2022 01:00AM ET
Gold prices slipped in Asia Thursday morning, falling for the third month in a row. Investors assessed gold's outlook as major central banks took aggressive measures to lower prices.
Gold futures were down 0.04% at $1,816.75 an ounce by 12:56 AM ET.
The dollar, which normally moves inversely to gold prices, eased slightly on Thursday morning. The dollar fluctuated near recent two-decade highs. The stronger dollar has dampened demand for gold without yields.
U.S. Federal Reserve Chairman Jerome Powell warned during the European Central Bank's (ECB) annual forum in Portugal that inflation could be long-lasting and that it was important to keep inflation lower despite economic pain.
Meanwhile, Fed Bank of Cleveland President Loretta Mester said authorities should act forcefully to contain price pressures.
Looking ahead, the trend will be increasingly bearish as rate hikes continue to come through and lower inflation expectations, DailyFX currency strategist Ilya Spivak told Reuters, adding that $1,780-$1,790 is a critical support level.
In Asia-Pacific, official data released earlier in the day showed China's manufacturing purchasing managers' index (PMI) rose to 50.2 in June from 49.6 in May, the first increase since February and suggesting the country's factory activity is picking up.
In other precious metals, silver fell 0.38%. Platinum rose 0.78%, while palladium gained 2.19%.