By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia, inching lower over weak U.S. inflation data and a strengthening dollar.
Gold futures were down 0.29% at $1837.40 by 11:15 PM ET (4:15 AM GMT), after reaching their highest point in a week overnight.
Data released on Wednesday showed a modest rise in January's U.S. consumer prices. Higher gasoline prices were dented by lower airline fares as COVID-19 continues to impact the airline industry, in turn lowering expectations of a sustained acceleration in inflation in 2021.
The core Consumer Price Index (CPI) grew 1.4% year-on-year, below the 1.5% growth in forecasts prepared by Investing.com and December’s 1.6% growth. The core CPI was flat month-on-month, against the predicted 0.2% growth and the 0.1% growth recorded in December.
The CPI grew 0.3% month-on-month in January, against December’s 0.2% growth, and grew 1.4% year-on-year, below the forecast 1.5% growth but above December’s 1.3% growth.
The dollar, which usually moves inversely to gold, slowly inched up on Thursday from two-week lows after the data release. Benchmark U.S. Treasury yields also dropped to a one-week low.
Federal Reserve Chairman Jerome Powell also warned that the U.S. job market remains “a long way from a full recovery” and called for a broad national effort to get Americans back to work post-COVID-19, during a speech on Wednesday.
Meanwhile, a government source on Wednesday said that Indian gold imports in January rose 72% from 2020. A correction in prices from record highs drew in retail buyers and jewelers, continuing to the growth.