Gold prices is rising in Tokyo as the US dollar loses some of its momentum following a sharp advance at the start of the week. The gold price remains, however, near a four-week low that was printed overnight. At $1,900, the price is 0.11% higher. Gold has risen from a low of $1,897 and touched a high of $1,904.
The negativity in the gold prices is marked by rising inflation in the US economy. The US Consumer Price Index (CPI) has reached multi-decade highs along with the second booster of the tight labor market has already featured a 50-basis point (bps) interest rate hike by the Federal Reserve (Fed). Well, as per the dictation by Fed chair Jerome Powell in his testimony at the International Monetary Fund (IMF) meeting; a jumbo rate hike is imminent while investors will further focus on the status of balance sheet reduction. Squeezing liquidity from the economy at a faster pace is the need of the hour and Fed policymakers are likely to exploit each measure.
Looking forward, Gold is likely to dance to the songs of the US Consumer Confidence and Durable Goods Orders release, which are due on Tuesday. A preliminary reading for the monthly Durable Goods Orders is 1% against the prior print of -2.1%.
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