Staff of Reuters Read for 2 minutes 14 JULY (Reuters) – Gold prices were down on Wednesday, pulled down by a strong dollar, as data indicated that consumer prices in the United States jumped by the most in 13 years last month, with attention now turning to Federal Reserve Chair Jerome Powell’s congressional testimony. * As of 0057 GMT, spot gold was unchanged at $1,806.07 per ounce. Gold futures in the United States were 0.2 percent lower at $1,807.20 per ounce. After posting its greatest daily percentage increase in over a month late Tuesday, the dollar index remained stable. For holders of foreign currencies, a higher dollar makes gold more expensive. As the economic recovery gained traction, consumer prices in the United States grew due to supply restrictions and a prolonged rebound in the costs of travel-related services from pandemic-low levels, boosting the risk that inflationary concerns may persist. Following the release of the data, market attention switched to the Federal Reserve, with the central bank’s chairman scheduled to testify before Congress later in the day for any clues on rising price pressures and monetary support. Powell has said several times that rising inflation is just temporary, and that supply chains will normalize and adapt. Janet Yellen, the Secretary of the Treasury, holds the same opinion. * A senior White House official said on Tuesday that the White House expects supply chain pressures that are fueling rising inflation to ease in the “not-too-distant future,” but that he couldn’t predict when. Rising coronavirus infection rates, fueled by the fast-spreading Delta strain, are prompting more European countries to re-impose restrictions, potentially jeopardizing the region’s economic recovery. Palladium and platinum were up 0.1 percent at $2,830.14 and $1,105.02, respectively, while silver was unchanged at $25.97. (Eileen Soreng in Bengaluru contributed reporting; Sherry Jacob-Phillips edited the piece.)/n
Read More
