By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia, with a steady dollar and elevated Treasury yields weighing on the greenback-priced bullion, whose outlook has already been dampened by the U.S. Federal Reserve’s aggressive stance on inflation.
edged down 0.20% to $1,812.34 by 1:31 AM ET (5:31 AM GMT). The , which normally moves inversely to gold, edged down on Thursday.
Gold’s daily closing price is effectively hugging the trendline projected from its March 2020 low, and intraday volatile spikes on either side of that key trendline have lacked conviction to prompt a sustainable move, City Index senior market analyst Matt Simpson told Reuters.
The yellow metal has largely seemed to track daily moves in both the dollar and benchmark in recent weeks. A greenback near 20-year highs pushed gold to its lowest in well over three months on Monday.
Gold’s performance and outlook have also been impacted as the Fed adopts a more hawkish monetary policy stance on interest rate hikes.
Fed Chairman Jerome Powell on Tuesday said that the U.S. central bank would hike its interest rates as needed to curb inflation which he said threatened the foundation of the economy.
“ETF (Exchange-traded fund) flows peaked on the 27th of April, and we’ve since seen a net outflow as investors have lost confidence in the yellow metal… and the rout in stock markets simply added another reason for some investors to convert their gold to cash,” said Simpson.
In Asia-Pacific, for April 2022 showing that rose 12.5% year-on-year and rose 28.2% year-on-year. The contracted to -¥839.2 billion (-$6.51 billion).
In other precious metals, inched up 0.1%, while fell 0.9% and was down 0.6%.