By Gina Lee
Investing.com – Gold was down on Wednesday morning in Asia, over rising U.S. Treasury yields and a strengthening U.S. dollar.
Gold prices fell about 1% during the previous session and recorded a second consecutive month of declines in May.
were down 0.48% to $1,839.50 by 11:18 PM ET (3:19 AM GMT). The , which normally moves inversely to gold, was up on Wednesday.
U.S. President Joe Biden met with the U.S. Fed Reserve Chairman Jerome Powell on Tuesday with historic inflation. Biden stressed that he respects the central bank’s independence but also affirmed a ahead of the November midterms.
To combat inflation, the Fed will start shrinking its $8.9 trillion balance sheet and release its later in the day.
However, investors are also concerned about a potential recession caused by monetary tightening, with many investors pricing in two half-point interest rate hikes in June and July.
In Asia-Pacific, Shanghai eased its lockdown on June 1, which raises hope for economic recovery. The released earlier in the day , which is above the 46 recorded in April 2022 and a forecast of 48 prepared by Investing.com.
Australia’s GDP grew and in the first quarter of 2022, according to data released earlier in the day.
In other precious metals, fell 0.67%. gained 0.38% and edged down 0.11%.