Gold fell ahead of US inflation data, Powell testified provided by Investing.com

Gina Lee

Investing.com-Gold fell in early Asian trading on Monday. With countries such as Australia and South Korea reintroducing restrictive measures, concerns about the COVID-19 outbreak remain, while US inflation data and the testimony of Federal Reserve Chairman Jerome Powell will be released throughout the week.

As of 12:38 am Eastern Time (4:38 am GMT), it fell 0.40% to US$1,803.35, but climbed to the US$1,800 mark.

Powell will testify before the Senate Banking Committee on Wednesday and Thursday, and his testimony will be reviewed for any clues about the asset reduction schedule. Investors are still waiting for the expiration on Tuesday in June and the expiration later this week.

The Fed said last week that material shortages and “recruitment difficulties” hindered the recovery of the US economy from COVID-19 and promoted “temporary” inflation.

In Europe, the President of the European Central Bank said earlier in the day that the European Central Bank will update its guidance on the next steps of monetary policy within ten days. She also hinted that new policies may be introduced in 2022 to support the European economy.

Investors also digested the Prudential (NYSE:) Regulatory Authority’s decision on Friday to “modify our approach to precious metal holdings related to deposits and clearing activities.” The decision means that banks that clear gold transactions in London can apply for an exemption from the stricter capital rules implemented in January 2022.

The Finance Ministers of the Group of 20 or G20 said at a meeting on Saturday that COVID-19 is still within the scope of investors’ attention, as the recent outbreaks involving Delta variants of the virus in some countries and unfair access to vaccines have contributed to the recovery of the global economy. Posing a threat, the G20 or G20 is in Venice.

Due to rising gold prices, demand for physical gold in India and other centers weakened in the previous week. Data from the US Commodity Futures Trading Commission also showed that as of the week of July 6, speculators increased their net long positions in COMEX gold and silver.

Among other precious metals, silver rose 0.6%. Palladium rose slightly by 0.1%, while platinum fell slightly by 0.1%.