By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia against a firmer dollar, as investors await U.S. data to get further signals on the inflation level and economic recovery from the COVID-19 pandemic.
were down 0.35% to $1,888.95 by 11:23 PM ET (3:23 AM GMT). The dollar, which usually moves inversely to gold, inched up while the benchmark 10-year U.S. Treasury yields slid below 1.50% for the first time since May 7.
Investors now await U.S. data, including the in May and , due later in the day, to get further clues on the U.S. economic growth and the direction of the U.S. Federal Reserve’s monetary policy.
“A significant upside surprise in inflation could tilt the Fed taper discussion to sooner rather than later, though the majority would still be looking for substantial progress toward maximum employment before considering tapering.” So far though, “the market is buying into the Fed’s view that the rise in prices is transitory and the Fed will not alter its policy guidance at next week’s FOMC meeting,” ANZ economists said in a note.
Across the Atlantic, the will hand down its policy decision later in the day. The central bank will maintain its current stimulus measures in case higher borrowing costs could block a still nascent economic recovery from the COVID-19 pandemic.
Meanwhile, the Group of Seven (G7) leaders’ summit will start in Cornwall on Friday.
In other precious metals, silver inched down 0.1%, platinum edged down 0.2%, while palladium was steady at $2,777.69.