Author: Don Obrien

Gold Up, But Gains Capped by Stronger Dollar By

© Reuters.

By Gina Lee – Gold was up on Monday morning in Asia. However, a strengthening and data showing persistent inflation that fueled bets of a sooner-than-expected policy tightening by the U.S. Federal Reserve capped the yellow metal’s gains.

edged up 0.13% to $1,786.15 by 12:03 AM ET (4:03 AM GMT), remaining below the $1,800 mark after dropping to an over one-week low on Friday. The dollar, which usually moves inversely to gold, inched up on Monday after hitting its highest level since Oct. 13 on Friday.

U.S. data released on Friday challenged the Fed’s position that current inflationary pressures are temporary and will ease soon. The personal consumption expenditures price index continued a run of inflation at levels not seen in 30 years. It was at 4.4 while growing 0.3% , in September.

However, U.S. Treasury Secretary Janet Yellen said on Friday that she still views inflation as a temporary result of severe supply chain bottlenecks, which will normalize in 2022.

The will hand down its policy decision on Wednesday, with the and the handing down their policies on Tuesday and Thursday respectively.

In Asia Pacific,   for October was 50.6. The and PMIs, released the day before, were at 49.2 and 52.4 respectively.

Meanwhile, physical gold was sold at a premium in India during the previous week as upcoming festivals boosted demand. However, premiums in top consumer China dropped.

In other precious metals, silver edged down 0.2%. Platinum gained 0.5% while palladium eased 0.3%to $1,996.90.

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Oliver Bolt

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