Gold Hits Three-and-a-Half Month High Over softer Dollar, Inflation Concerns
Gold shone on Tuesday trade in Asia as the dollar softened and rising inflation continued to press worries on investors.
Gold futures gained 0.02% to $1,868.05. This was the yellow metal’s highest level in more than three months (since February 1, 2021). The dollar, which usually moves inversely to gold, fell near multi-month lows.
Investors remained wary of the interest rates hike move of the U.S. Federal Reserve earlier than expected to curb rising inflation.
Fed President Robert Kaplan, however, dismissed the idea as he said that he doesn’t see inflation becoming a problem anytime soon and reiterated that he didn’t expect a hike in the interest rate until 2022.
Despite the Fed chair’s positive outlook, investors eagerly await minutes of the Fed’s recent meeting, which is due on Wednesday, to get hints on the movement of the central bank’s monetary policy.
In other precious metals, silver and platinum both gained 0.2%. Palladium joined the winning parties with a 0.3% gain.