By Gina Lee
Investing.com – Gold rose Friday morning in Asia and is forecast to post a small weekly gain. The slightly faster-than-expected rise in US inflation fueled investor bets that price pressures will be temporary and central bank support will continue.
rose 0.33% to $ 1,902.70 at 1:05 AM ET (5:05 AM GMT), after hitting $ 1,916.64, the highest intraday level since January 8, 2021, during the prior week.
US inflation data released on Thursday said the core consumer price index (CPI) grew 3.8% more than expected. It grew 0.7%, above expectations but below April’s growth.
On the central bank front, investors continued to take in Thursday’s broadcast. ECB President Christine Lagarde also renewed her promise of faster bond buying, even as officials admitted for the first time since 2018 that the euro zone economy is no longer overshadowed by risks to its growth prospects. .
The US Federal Reserve is also due to broadcast its policy decision the following week.
The yellow metal hovered around $ 1,900 as investors reacted to the latest CPI figures, indicating that they are buying into the Fed’s insistent view that inflation is temporary and that there will be no major changes in monetary policy in the short term.
“Despite the higher-than-expected US CPI, yields were under pressure after the report, which has provided support for gold,” he added. ING Group (AS 🙂 NV’s head of commodity strategy Warren Patterson told Reuters.
Investors are also looking ahead to the Fed’s Jackson Hole symposium scheduled for Aug. 26-28.
“We believe that the Fed will likely continue to hold the transient inflation view at next week’s Federal Open Market Committee meeting, but the language could change at Jackson Hole in late August, opening the door for a further reduction announcement. later in the year, “Patterson said.
In other precious metals, silver was stable at $ 27.96, while palladium fell 0.5% and platinum fell 0.1%.
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