Gold prices rose in Asia on Tuesday morning. Rising U.S. government bonds and the U.S. dollar can not counteract the price increase of gold in the morning. Asia, Ukraine, and U.S. inflation data are in focus.
- Gold up 0.66% to $1,821.30 per ounce.
- Silver up 2.2% to $23.09 per ounce.
- Palladium down 0.99% to $2,356.00 per ounce.
- Platinum down 0.49% to $1,028.00 per ounce.
“The largest component of inflation currently, beyond the
supply chain issues, is oil prices. And this is a problem no matter how high you move interest rates. Gold is getting a little bit defensive, realizing that we could be in this state for hyperinflation,” said Stephen Innes, managing partner of SPI Asset Management.
With strong working figures, gold prices came out of the weekend yesterday. Non-farm payrolls unexpectedly rose by 467,000 in January. The unemployment rate, however, saw a slight increase to 4%. This week, the U.S. CPI figures are in focus which will be released on Thursday (Asia time).
In Asia, Chinese data released yesterday showed that the Chinese Caixin Service PMI fell to 51.4 in January from 53.1 in December. Australia published strong growth in retail sales, which had risen 8.2% in Q4/16 and reached new highs.
Meanwhile, geopolitical tensions in Eastern Europe continue. The U.S. government decided last week to move more troops to Europe. More troops are to be stationed in Germany, Poland, and Romania. A spokesman on the U.S. side also warned that Russia is on the verge of invading Ukraine. For this reason, French President Macron went to Moscow yesterday to discuss the situation with Russian President Putin. He is confident that a diplomatic solution can be found. In addition, German Chancellor Scholz left yesterday for the U.S. to meet with President Biden.
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Monday, February 7, 2022