Title: Gold Down Over The Strengthening U.S. Dollar
May 31, 2022 11:28PM ET
Gold fell on Wednesday morning in Asia on rising US Treasury yields and a stronger US dollar.
Gold prices fell about 1% in the previous session, marking the second consecutive month of declines.
Gold futures had fallen 0.48 percent to $1,839.50 by 11:18 a.m. Swedish time. The dollar, which normally moves inversely against gold, was up on Wednesday.
U.S. President Joe Biden met with Federal Reserve Chairman Jerome Powell on Tuesday to discuss historic inflation.
Biden stressed that he respects the central bank's independence but also confirmed a "laser focus on addressing inflation" ahead of the November midterm elections.
To combat inflation, the Fed will begin shrinking its $8.9 trillion balance sheet and publish its Beige Book later in the day.
However, investors are also worried about a potential recession caused by monetary tightening, with many investors pricing in two rate hikes of half a percentage point in June and July.
In the Asia-Pacific region, Shanghai eased its freeze on June 1, raising hopes of economic recovery.
China's Caixin manufacturing purchasing managers' index, released earlier in the day, recorded 48.1 in May, above the 46 recorded in April 2022 and a forecast of 48 produced by Investing.com.
Australia's GDP grew by 0.8% at a quarterly rate and 3.3% at an annual rate in the first quarter of 2022, according to data released earlier in the day.
In other precious metals, silver fell 0.67 percent. Platinum rose 0.38% and palladium fell 0.11%.