• 139 days Could Crypto Overtake Traditional Investment?
  • 144 days Americans Still Quitting Jobs At Record Pace
  • 146 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 149 days Is The Dollar Too Strong?
  • 149 days Big Tech Disappoints Investors on Earnings Calls
  • 150 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 152 days China Is Quietly Trying To Distance Itself From Russia
  • 152 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 156 days Crypto Investors Won Big In 2021
  • 156 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 157 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 159 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 160 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 163 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 164 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 164 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 166 days Are NFTs About To Take Over Gaming?
  • 167 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 170 days What’s Causing Inflation In The United States?
  • 171 days Intel Joins Russian Exodus as Chip Shortage Digs In
Hawkish Fed Sends Gold Prices Crashing

Hawkish Fed Sends Gold Prices Crashing

The gold bulls are facing…

Gold Output Set To Decline

Gold Output Set To Decline

The suspension of mining activities…

Gold Bulls Are Facing An Uphill Battle

Gold Bulls Are Facing An Uphill Battle

Last year proved to be…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Gold Inches Closer To $2,000

Gold

Gold prices advanced higher on Monday as a weaker US dollar and expectations that the US Federal Reserve will reiterate its dovish monetary policy stance later this week helped to reinvigorate investor interest for bullion.

Spot gold was up nearly 1.0% at $1,959.44 per ounce by 11:15 a.m. EDT — its highest in almost two weeks and the largest gain during this period. US gold futures also rose 1.0% to $1,969.20 per ounce.

“Gold is firm on the basis that the Fed could adopt a further dovish message with respect to average inflation targeting,” Michael Hewson, chief market analyst at CMC Markets UK, said in a Reuters interview.

“If you want to have a policy of average inflation targeting, you’re going to have to go into detail as to how you are going to arrive at that particular outcome,” Hewson added.

Meanwhile, the dollar weakened — with the US Dollar Index down 0.3% — bolstering gold’s appeal for investors holding other currencies ahead of the Fed’s policy decision on Wednesday.

“If inflation forecasts remain at 2% or below, this could offer gold a tailwind as the zero-yielding metal thrives in a low-interest rate environment,” FXTM analyst Lukman Otunuga said. Related: Cobalt Squeeze Threatens The Electric Vehicle Boom

Market participants are also waiting for the Bank of Japan and the Bank of England’s policy decisions, which are due on Thursday.

Capping bullion’s gains, UK-based drugmaker AstraZeneca resumed its Phase-III trial over the weekend, rekindling hopes for a potential covid-19 vaccine and giving a boost to global markets.

“Gold is likely to remain trapped in a range in the near term due to the conflicting forces buffeting the commodity with major headwinds in the form of rising vaccine hopes and positive economic data from major economies,” Otunuga said.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment