After being shocked by higher -than -expected inflation data readings, gold prices resumed their climb in the Asian session, driven by its attractiveness as a hedging asset to inflation.
At the time of writing, spot gold was up $ 1,813 an ounce, heading for a three -week high, while gold futures were up $ 1,814 an ounce.
The US consumer price index (CPI) rose 0.9% in June, the largest increase ever recorded since June 2008, from 0.6% previously recorded.
On an annual basis, consumer prices jumped 5.4% following the previous month's increase of 5.0%. Core inflation rose 0.9% after rising 0.7% in May.
These encouraging readings, in turn, pushed US 2- and 10 -year U.S. treasury yields up, which was a factor to the limited gold price in the previous session.
Investors ’attention is now turning to Fed Chairman Jerome Powell’s speech who will testify before Congress on Wednesday and Thursday to get any signals on when stimulus cuts and higher interest rates will be implemented.
