By Gina Lee
Investing.com – Gold was up on Tuesday morning in Asia, even as the dollar slowly resumed an upward trend and U.S. Treasury yields resumed their climb.
Gold futures gained 0.48% to $1,882.65 by 12:36 AM ET (4:36 AM GMT). The dollar, which normally moves inversely to gold, inched up on Tuesday after falling from near 20-year highs on Monday.
The Chinese yuan, which had been on a downward trend lately, found a floor as investors reduced bets on whether U.S. interest rate hikes will drive further gains for the greenback. Benchmark U.S. 10-year Treasury yields also climbed.
“Now that we have the much-needed clear-out on gold markets, longer-term holders could start to position for the eventual southbound turn on the U.S. hard economic data,” SPI Asset Management managing partner Stephen Innes told Reuters.
Asian shares were mostly up on Tuesday, and the Reserve Bank of Australia released the minutes from its latest policy meeting earlier in the day. G-7 finance ministers and central bankers are due to meet a day later.
Investors also await speeches from Fed Chairman Jerome Powell and other Fed policymakers later in the day, with Philadelphia Fed President Patrick Harker speaking a day later.
In other precious metals, silver edged down 0.2%, platinum was flat at $945.76, and palladium fell 1.2%.
“With China on the verge of reopening and likely adding more stimulus, it benefits all hard commodities. And palladium is ultimately used in industrial applications, particularly within the auto sector; that segment could benefit from ports reopening in China,” said Innes.
Improving demand and lower supply will also help palladium and rhodium swing back into deficit in 2022 and reduce platinum’s surplus, consultants Metals Focus said on Monday.
Source:investing.com
