Gold futures turned lower Monday but stayed near 13-month highs despite conflicting assessments of the inflation outlook from a pair of Federal Reserve officials.
April gold settled at $1,264/oz, down $6.70, or 0.5%.
Vice Chair Stanley Fischer said this afternoon that “we may well at present be seeing the first stirrings of an increase in the inflation rate-something that we would like to happen.”
Crude oil prices have jumped $35 a barrel in recent weeks, a sign that prices will also rise.
On the other hand, the Fed’s Lael Brainerd want to talk a more cautious approach before considering another rate hike.
“Given the currently weak relationship between economic slack and inflation and the persistent, depressing effects of energy price declines and exchange rate increases, we should be cautious in assessing that a tightening labor market will soon move inflation back to 2%. We should verify that this is, in fact, taking place,” Brainard said in remarks to the Institute of International Bankers.
The material has been provided by InstaForex Company – www.instaforex.com
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