Gold rising on inflation concerns.
Gold rising Friday as a preliminary deal on U.S. infrastructure spending added to dollar bearishness, while investors awaited inflation data. The spending plan should be positive for gold, as it has to be financed to a large extent with higher debt. Progress on the plan weighed on the dollar, making gold cheaper for those holding other currencies, ahead of U.S. producer price data that could show a clearer picture on rising inflation. Fed warned on Thursday that inflation could rise more than policymakers’ expectation near term, after Fed chief Jerome Powell said it would not be the only determinant of interest rate decisions. The upcoming inflation data will directly affect gold prices.
Expect buyers on downward corrections.
Next resistance to watch – 1795.00