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·         Gold prices rose on Wednesday, hovering below a near five-month peak hit the previous session, as U.S. Treasury yields pulled back, while investors awaited key economic data this week that will shed light on the outlook for inflation.

 

·         Spot gold was up 0.4% at $1,906.80 per ounce at 1:43 p.m. EDT (1743 GMT), after hitting its highest since Jan. 8 at $1,916.40 on Tuesday. U.S. gold futures settled up 0.3% at $1,909.90.

 

·         “At this point it’s the anticipation of some of the economic news that’s coming out this week ... which is going to further the concerns regarding inflation and will have a positive impact on the momentum in the gold market,” said Jeffrey Sica, founder of Circle Squared Alternative Investments.

 

·         “The Treasuries have been relatively calm considering the inflation news,” Sica said, adding that momentum in the stock market was preventing gold from breaking higher.

 

·         Benchmark U.S. 10-year Treasury yields eased below 1.60%, reducing the opportunity cost of holding bullion, which pays no interest, while stock markets hovered near record highs.

 

·         Investors are now awaiting U.S. payrolls data due on Friday to gauge cues on future monetary policy.

 

·         Bottlenecks in the supply chain and rising commodity prices could limit U.S. manufacturing growth potential, and the Federal Reserve is paying attention to labor market data, Commerzbank analyst Daniel Briesemann said.

 

·         The dollar index eased from session highs, making gold more affordable for other currency holders.

 

·         “A weaker dollar and high inflation (both expected and real) should lend support to gold. We continue to see gold at $2,000 sometime in the second half of the year,” ED&F Man Capital Markets analyst Edward Meir said.

 

·         Among other precious metals, palladium was steady at $2,860.21 per ounce, silver gained 0.7% to $28.10, and platinum slipped 0.2% to $1,189.10.

·         Companies spending more on wages and supplies, but still can’t find enough workers, Fed report says

 

Businesses are facing rising costs particularly on goods used to make their products, while they are offering higher wages and other incentives to get employees back to work, the Federal Reserve reported Wednesday.

 

Economic growth increased at a “moderate pace” from early April to late May, the central bank said in its periodic “Beige Book” survey of activity across its 12 districts.

 

Companies said increasing vaccination rates, as well as easing of restrictions put in place to combat the Covid-19 pandemic, also helped with growth.

 

 

·         Fed's Harker says it's time to 'think about thinking about' tapering

As the U.S. economy continues to recover from the coronavirus crisis and the labor market rebounds, it may be time for Federal Reserve policymakers to start thinking about the best way to slow the pace of its asset purchases, Philadelphia Fed Bank President Patrick Harker said on Wednesday.

 

·         U.S. says ransomware attack on meatpacker JBS likely from Russia

Brazil’s JBS SA (JBSS3.SA) told the U.S. government that a ransomware attack on the company that disrupted meat production in North America and Australia originated from a criminal organization likely based in Russia, the White House said on Tuesday.

 

·         China May Have Most to Lose From Prolonged JBS Meat Shutdown

A prolonged shutdown at global meat supplier JBS SA could hit China the hardest as the country is the world’s biggest beef buyer and accounts for almost a third of the producer’s export revenue.

China is also an important market for beef shipments from Australia, where a devastating cyberattack has halted JBS slaughter houses since the weekend, along with all its plants in the U.S. and at least one in Canada. Beef prices in China are already near a record, and any lengthy supply disruption could push up prices even more and stoke food inflation fears.

 

·         G7 to support Japan's efforts to stage Tokyo 2020 Olympics -Kyodo

The Group of Seven leaders plan to support Japan's efforts to stage the Tokyo 2020 Olympic Games this summer, Kyodo news agency reported on Wednesday.

They will express their support in a statement after a summit later this month, the report added.

 

·         Hong Kong virus panel agrees to lower vaccination age to 12

Hong Kong’s expert advisory panel on Covid vaccinations has agreed to expand eligibility to children as young as 12, according to a person familiar with the matter, as the city works to boost lackluster inoculation rates.

 

·         S.Korea says vaccine shipment to N.Korea from COVAX delayed again