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.

edged down 0.19% at $1,744.25 by 11:59 PM ET (3:59 AM GMT). The , which usually moves inversely to gold, also fell to a three-week low on Wednesday.

Data released on Tuesday said that the U.S. rose 0.3% month-on-month in March and the 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 , and the . The country will release further data, including , and , on Friday.

Capping losses for the safe-haven yellow metal, however, were investor concerns over Tuesday’s in the use of the Johnson & Johnson (NYSE:) COVID-19 vaccine. The U.S. Centers for Disease Control and Prevention and 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 .

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%.