The price of gold rose, but a stronger dollar and rising bond yields causing the price of gold to move up in a narrow frame.
Gold futures were up 0.12% to $1,733.85, while the dollar strengthened and near a three-week high.
The US Senate passed a large infrastructure plan on Tuesday 10 Aug-2021, which will now be voted on by the House of Representatives. The news pushed US Treasury yields to their highest levels since mid-July. And the US stock market closed at a record high.
Immediately after passing the law, the Senate has begun debates on the $3.5 trillion spending blueprint. Investors are now waiting for information. Basic consumer price index to be revealed later in the day to gauge inflation pressures and the Fed’s next move.
“Current inflation should not prompt the Fed to begin prematurely reducing asset values or raising interest rates. This is because many months of labor data are needed before a change in monetary policy is needed,” Chicago Fed President Charles Evans said.
Evans’ comments contrasted with the Fed’s latest stance, which tends to reduce assets faster than expected, and as a result, gold prices fell to their lowest level in four months on Monday.
Other precious metals:
Silver fell 0.1% to $23.29 an ounce.
Palladium stabilized at $2,640.75.
The Spot Market is Open
Thu. 12 Aug- 2021