By Gina Lee
Investing.com – Gold was down on Wednesday morning in Asia, as investors continue to digest a higher-than-expected rise in U.S. inflation.
Data released on Tuesday said that the U.S. core consumer price index (CPI) rose 0.3% month-on-month in March and the CPI grew 0.6% month-on-month, its highest growth in more than eight-and-a-half years. It also set off what is widely expected to be a fleeting spell of higher inflation.
Investors also continue to digest Wednesday’s March trade data from China that included exports, imports and the trade balance. The country will release further data, including GDP, industrial production and fixed asset investment, on Friday.
Capping losses for the safe-haven yellow metal, however, were investor concerns over Tuesday’s halt in the use of the Johnson & Johnson (NYSE:JNJ) COVID-19 vaccine. The U.S. Centers for Disease Control and Prevention and the Food and Drug Administration (FDA) halted the use of the vaccine after six women who received it developed a rare and severe form of blood clotting, and the pause is expected to last for a few days.
The U.S. economy could expand by 5% to 6% in 2021, boosted by increased vaccinations and solid fiscal assistance, but the Federal Reserve will not withdraw its funding just yet, Philadelphia Fed President Patrick Harker said.
Fed Chairman Jerome Powell will speak at an Economic Club of Washington event later in the day, and the central bank will also release its Beige Book.
Across the Atlantic, the European Central Bank policymaker Francois Villeroy de Galhau said on Tuesday that the bank must spell out its tolerance for overshooting its inflation target.
In other precious metals, silver rose 0.4%. Palladium was flat at $2,689.44 and platinum was up 0.8%.