Investing.com - Gold prices rose on Friday in Asia despite stronger-than-expected U.S. inflation and labor that contrasted Federal Reserve Chair Jerome Powell’s concerns that economic growth was under threat.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange last traded at $1,409.6 by 12:38 AM ET (04:38 GMT), up 0.2%.
Earlier this week, Powell expressed worries that the U.S. economy was under threat and hence a rate cut was justified. He was also concerned weak inflation would be more persistent than previously expected.
“The bottom line is the economy is in a very good place, and we want to use our tools to keep it there”, said the Fed chair, who vowed to “act as appropriate to sustain the expansion” of U.S. growth.
However, data released overnight showed weekly jobless claims came in at 209,000, lower than the expected 220,000 and added to signs of a strong U.S. labor market. The data came after a stronger-than-expected jobs report released last Friday.
Meanwhile, core consumer prices increased by the most in nearly one-and-a-half years in June, data showed. The unexpected tick higher to 2.1% pushes the reading slightly past the Federal Reserve’s target of 2.0%.
Prices of the yellow metal halted its rally and traded lower immediately following the data, but recovered today and remained above the $1,400 level.
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