Gold drops, investors await U.S. economic data to gauge inflation further
Gold edged down on Thursday trade in Asia as investors await U.S. economic data to gauge inflationary pressures further. A firming dollar also kept the yellow metal from advancing further.
Gold futures dropped 0.45% to $1,775.35 by 12:11 AM ET. The dollar, which usually moves inversely to gold, advanced on Thursday to a near 11-week high.
Aside from firming dollar, investors also considered comments from U.S. Federal Reserve officials. Fed Chairman Jerome Powell emphasized the central bank’ stance of retaining a loose monetary policy, but has also remarked that a gradual withdrawal of emergency support could happen in the months ahead.
Gold is commonly viewed as a hedge against inflation, but interest rate hike by the Fed will raise the opportunity cost of holding it.
In other precious metals, silver steadied at $25.87 per ounce. Palladium lowered 0.1% while platinum added 0.5%.