Investing.com – Gold was up on Tuesday morning in Asia, steadying from the one-week low hit during the previous session. The dollar weakened ahead of U.S. inflation data that could indicate when asset tapering by the U.S. Federal Reserve is likely to begin.
Gold futures were up 0.24 to $1,810.15 by 12:30 PM ET (4:30 AM GMT), falling to its lowest level since Jul. 6 during the previous week. The dollar, which usually moves inversely to gold, inched down on Tuesday.
The New York Federal Reserve’s monthly survey said investors widely expect the economy to continue its rapid recovery from COVID-19 over the next year. Forecasts for inflation, earnings, income growth and spending all also increased in June, according to the report.
Investors also await the consumer price index for June, due later in the day, as well as the producer price index due later in the day.
In Asia, investors digested better-than-expected trade data from China released earlier in the day. The data said that exports rose 32.2% year-on-year, imports grew 36.7% year-on-year and the trade balance stood at $51.53 billion in June.
Fed Chairman Jerome Powell will also testify before Congress on Wednesday and Thursday, with his comments to be scrutinized for hints on when the central bank could start asset tapering.
Across the Atlantic, the European Central Bank (EBC) will meet in the following week to discuss its shift to a 2% inflation target as well as its monetary policy moving forward.
With the U.K. due to remove almost all its remaining COVID-19 restrictions in England on Jul. 19, Prime Minister Boris Johnson on Monday urged caution as the number of cases increased.
In another sign that COVID-19 is far from over, World Health Organization Director-General Tedros Adhanom Ghebreyesus warned on Monday the Delta variant was fast becoming dominant, with many countries struggling with vaccine shortages.
In other precious metals, silver rose 0.3% while palladium fell 0.4% and platinum eased 0.2%.