Gold was up on Wednesday morning in Asia, steadying ahead of the U.S. Federal Reserve’s latest meeting minutes and inflation data. Both the minutes and the data will be analyzed for clues as to the central bank’s timeline for asset tapering.
Gold futures were up 0.18% to $1,762.55 by 9:47 PM ET (1:47 AM GMT).
Inflationary pressures are lasting longer than expected, according to Fed Bank of Atlanta President Raphael Bostic, and it is inappropriate to describe the rise as transitory. Meanwhile, Vice Chairman Richard Clarida said that the conditions required for the Fed to begin asset tapering have “all but been met.” Clarida’s comments widened expectations that the Fed will begin asset tapering as scheduled in November 2021.
With increasing inflationary pressures globally, markets are pricing aggressive interest rate hikes, largely betting that monetary policy will be tightened sooner and at a faster rate than currently indicated.
The global economic recovery from COVID-19 is being disrupted by ongoing supply chain snarls and inflationary pressures, according to the International Monetary Fund, as it cut growth outlooks for the U.S. and other major industrial powers.
The U.S. JOLTs job openings index was 10.44 million in August, a record high and indicative of a tightening labor market.
In other precious metals, silver and palladium inched up 0.1%, while platinum inched down 0.1%.