Central banks are making moves to tighten monetary policy and raising interest rates are also bearish for gold: source
By Youngchang Chin Dow Jones Newswires
Gold prices were higher in early Asian trading Monday, April 18, 2022, with concerns of elevated U.S. inflation driving demand for the safe-haven asset. (REUTERS/Mike Segar (UNITED STATES) / Reuters Photos)
Gold was trading higher in early Asian trading, with concerns of elevated U.S. inflation driving demand for the safe-haven asset, DailyFX.com analyst Thomas Westwater said in a note.
However, “while inflation is at more than 40-year highs, forward expectations are beginning to ease. This will likely weigh on bullion prices,” he said.
Central banks are making moves to tighten monetary policy and raising interest rates are also bearish for gold, as it is a non-interest-bearing asset, Westwater added.
Spot gold is 0.6% higher at $1,985.49 a troy ounce.