Title: Gold Up, Investors Await Inflation Data
May 10, 2022 12:59AM ET
The gold price rose on Tuesday morning in Asia due to the weaker dollar. Investors are now waiting for inflation data.
Gold futures rose 0.24% to $1,863.89 by 12:50 AM ET.
The dollar, which usually moves inversely to gold, eased slightly Tuesday morning. The Federal Reserve's tighter policy to fight inflation has given the dollar five weeks of gains.
The Fed made its first rate hike of half a point, and the Bank of England also raised rates to 1% in its decision on Thursday, the highest level since 2009.
The prospect of aggressive rate hikes sent the U.S. 10-year Treasury bond to 104.19 overnight, a 20-year high.
With investors expecting more rate hikes of the same magnitude from the Fed, Atlanta Fed President Raphael Bostic said Monday he doesn't expect a 75 basis point rate hike because there are some signs inflation is cooling.
In Asia-Pacific, trade data from China on Monday showed exports rose 3.9% in April from a year earlier, the slowest pace since June 2020. The COVID-19 lockdown measures have hurt trade.
Now investors are waiting for the U.S. core CPI on Wednesday, as well as the U.S. producer price index and initial jobless claims due on Thursday.
In other precious metals, silver rose 0.99%, platinum gained 0.58%, and palladium rose 2.18%.