Gold Down, Dollar Up as Investors Await Key U.S. Inflation Data

By Gina Lee

Investing.com – Gold was down on Thursday morning in Asia, while U.S. dollar and Treasury yields are on an upward trend. Investors now await U.S. inflation data which could provide clues on the Federal Reserve's next policy move.

Gold futures were up 0.66% to $1,671.75 by 10:56 PM ET (3:56 AM GMT). The dollar, which normally moves inversely to gold, edged up on Thursday.

Benchmark 10-year Treasury yields remained close to their highest level since Nov. 29, hit on Wednesday after a 10-year note auction.

U.S. data, including the consumer price index (CPI), is due on Friday. Investors also digested Wednesday’s JOLTs job opening figure, which surged to 11.033 million in October. However, decreasing hiring also suggests a worsening worker shortage.

The Fed is expected to hike interest rates in the third quarter of 2022, earlier than expected a month ago, according to a Reuters poll. Most of the respondents added that the risk was of an even-sooner interest rate hike.

Across the Atlantic, European Central Bank vice president Luis de Guindos said on Wednesday that Eurozone inflation will take longer to fall back to target than earlier thought, but so far there is no evidence that high prices are becoming embedded in wages.

The Fed, European Central Bank, and the Bank of England are all due to hand down their policy decisions next week.

Meanwhile, Chinese inflation data released earlier in the day showed that the producer price index grew 12.9% year on year. The CPI grew 2.3% year-on-year and 0.4% month-on-month in November.

In other precious metals, silver and platinum edged down 0.2%, while palladium was up 0.4%.

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