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Gold drops in Asia ahead of Yellen remarks

On Friday, gold dropped as market participants are looking ahead to Janet Yellen, Fed Chair for further direction on American interest rates.    

In New York, June delivery gold futures went down 0.37%, trading at $1,215.85 per troy ounce. July delivery silver futures edged down 0.51%, being worth $16.260 per troy ounce. As for copper futures, they lost 0.05% at 2.096 a pound.

Earlier in Japan, April’s national CPI sagged 0.3% in line with the 0.3% fall observed year-on-year. As for national core CPI, it edged down 0.3%, which is lower than the supposed 0.4% sink year-on-year.   Consumer prices are still under pressure from lower goods prices, because food companies as well as restaurant chains were quite cautious regarding raising prices at the start of fiscal 2016 in April.

Service costs, accounting for a little over half of the CPI basket demonstrated a minor pickup, with a tighter labor supply driving prices for housekeeping as well as medical services. In general, a relatively slower tempo of wage hikes in fiscal 2016 is overshadowing the prospect for the BOJ guiding inflation to 2% right from zero in the medium term.

 

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