Gold Up after Previous Session’s Losses, Fed Taper Imminent

© Reuters.

By Gina Lee – Gold was up on Monday morning in Asia, clawing back gains from the prior session’s losses. U.S. Federal Reserve chief Jerome Powell’s view that inflation could ease in 2022 and the central bank was on track to begin asset tapering soon had contributed to the downward trend.

edged up 0.16% to $1,799.01 by 11:59 PM ET (3:59 AM GMT). The , which usually moves inversely to gold, edged down on Monday. However, the greenback steadied from its steepest weekly loss in more than a month, thus applying further pressure to the yellow metal.

Gold had rallied to its highest since early September 2021 on Friday, before giving up some gains on Powell’s comments on asset tapering. Inflation could persist for longer, and the Fed could begin asset tapering soon but remain patient on interest rate hikes as employment was still low, he said at a discussion panel on Friday.

However, U.S. Treasury Secretary Janet Yellen said on Sunday the U.S. was not losing control of inflation, which could return to normal by the second half of 2022.

Investors also await policy decisions from the and the (ECB), both due on Thursday. Although neither central bank is expected to change policy, market indicators suggested higher inflation than the ECB’s guidance.

Speculators cut their net long positions in gold in the week to Oct. 19, according to data from the U.S. Commodity Futures Trading Commission data released on Friday.

In other precious metals, silver was flat at $24.31 per ounce. Platinum inched up 0.1% and palladium rose 0.7%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.