Gold rose, but the gains were limited by higher-than-expected U.S. inflation provider Investing.com

Gina Lee

Investing.com-Gold rose in early Asian trading on Wednesday, but data released on Tuesday showed that US consumer prices rose the most in 13 years last month, limiting gold’s gains.

As of 1:16 AM Eastern Time (5:16 AM GMT), the stock price rose 0.21% to $1,813.65. Normally contrary to the trend of gold, it fell slightly on Wednesday and stabilized after the best one-day percentage increase in the past month on the previous trading day.

The United States rose 0.9% month-on-month in June, higher than expected, and consumer prices rose the most in 13 years. As supply constraints and travel-related service costs continue to rebound from the level depressed by COVID-19, inflation concerns are expected to remain.

Investors’ attention is now turning to Federal Reserve Chairman Jerome Powell’s testimony in Congress later in the day to find any clues about when the central bank will begin to reduce asset sizes and raise interest rates. So far, Powell has insisted that higher inflation will be a temporary phenomenon.

A senior White House official said on Tuesday that the supply chain pressures that have contributed to rising inflation are expected to subside in the “near future,” but did not specify when.

At the same time, the Federal Reserve kept interest rates unchanged at 0.25% and announced that it would stop large-scale asset purchases from next week, which surprised the market. He also will make their own decisions on Thursday and Friday.

With regard to COVID-19, as the number of cases involving the Delta variant of the virus has increased, some countries have tightened restrictions. Australia has extended the current lockdown in Sydney for another two weeks, and South Korea has tightened social distancing restrictions in most parts of the country after setting a new record of 1,615 cases per day on July 14.

In other precious metals, silver was flat at $25.9, while palladium and platinum rose slightly by 0.1%.