Gold rose, the central bank regained its desire to buy gold. Investing.com

Doris You

Investing.com-After some central banks started to increase their gold holdings, Asian gold rose in early trading on Monday. Investors are also waiting for further US economic data to obtain further clues about the central bank’s monetary policy.

As of 10:39 pm Eastern Time (2:39 am GMT), the stock price rose 0.24% to $1,787.55.

On the demand side, due to signs of accelerating inflation, central banks including Serbia, Thailand and Ghana are increasing their gold holdings.

The National Bank of Serbia stated: “In the long run, gold is the most important guardian and guarantor against inflation and other forms of financial risks.”

In the US, data released on Friday showed that 850,000 people were added in June due to rising wages and more incentives. In the forecast prepared by the investment website, the number is higher than 700,000.

Due to concerns about continued inflation, investors are now focusing on other economic data and the Fed’s next move to obtain further clues about the US economy’s recovery from COVID-19.

In Asia, service industry activity in Japan, the world’s third-largest economy, shrank for the 17th consecutive month in June, as COVID-19 hurt domestic and international demand.

At the same time, data released earlier in the day showed that China’s index in June was 50.3.

India’s gold was sold at a premium for the first time in the previous week in more than two weeks. After the second largest gold consumer country slightly eased restrictions on COVID-19, demand increased.

In other precious metals, silver fell slightly by 0.2%, palladium rose 0.3%, and platinum fell 0.3%.