Title: Gold Down over Strengthening U.S. Dollar
Jun 13, 2022 12:36AM ET
Gold fell in Asia on Monday morning on a stronger US dollar as Friday's high US inflation data suggested more aggressive monetary tightening.
By 12:25 p.m. CET, gold futures contracts had fallen 0.51 percent to $1,865.95. The dollar, which usually moves inversely to gold, fell on Monday morning.
Benchmark 10-year U.S. Treasury yields also rose to their highest level since May 9th, reducing demand for zero-yielding gold.
U.S. inflation data released on Friday showed the U.S. consumer price index rose 8.6% year-on-year in May, a new 40-year high, raising investor fears of a recession caused by the U.S. Federal Reserve's tightening monetary policy.
The Fed's June meeting will be held on Wednesday, and the central bank is expected to raise interest rates by half a percentage point for the second consecutive month to cool inflation.
Adding to investor fears of an economic downturn, Beijing announced three rounds of mass testing on Sunday as it recorded new outbreaks of the COVID-19 virus.
As for the actions of other central banks, the Bank of England will issue its policy decision on Thursday, while the Bank of Japan will follow on Friday.
Among other precious metals, silver was down 1.35%. Platinum was down 1.42% and palladium was down 1.29%.