Traders weighed in on the Fed’s statements on the trajectory of monetary tightening ahead of the publication of US inflation data, and gold climbed for the fifth day in a row amid a risk-averse mood in the markets.
Rising bond yields and stronger dollar put pressure on gold
Demand for inflation hedges and safe-haven assets is supporting the precious metal amid the Russia-Ukraine conflict and global growth worries, but higher interest rate predictions are holding back the non-interest-bearing metal.
According to the report, “Gold could continue to see significant inflows as inflation and growth uncertainties remain high in the coming months owing to geopolitics and conflicting views on how aggressively the Fed should tighten monetary policy in the summer months.” Eduard Moya, senior market strategist at Oanda Corp., echoed this sentiment.
After rising 0.3 percent on Monday, spot gold rose 0.3 percent in early Singapore trade to $1,959.34 per ounce.