• 18 hours Ireland Balks At Biden’s Global Tax Plan
  • 4 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 7 days Facial Recognition Is Watching You
  • 9 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 9 days The Fed’s $3 Trillion Headache
  • 12 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 12 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 13 days Delta Variant Real Threat To Economic Recovery
  • 16 days JEDI Drama Continues With Microsoft Contract Cut
  • 18 days DiDi Shares Take a Beating From Chinese Regulators
  • 19 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 19 days Jobs Report Has Big Numbers, But Still Big Problems
  • 20 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 23 days Didi Just Went Public, And Uber Is Loving It
  • 24 days Islamic Finance On Track To Hit $3.7 Trillion
  • 25 days The Lumber Bubble Is Bursting
  • 29 days A New Entry In The Two Trillion Dollar Club
  • 29 days 3 Upcoming IPOs To Watch As IPO Market Rebounds
  • 31 days Welcome To The Used Car Bonanza
  • 32 days The Year Of The Retail Investor Keeps Getting Bigger
Gold Slips Following Stimulus Announcement

Gold Slips Following Stimulus Announcement

Gold prices retreated on Monday…

Maduro Turns To Gold Mining As Venezuela's Economy Crumbles

Maduro Turns To Gold Mining As Venezuela's Economy Crumbles

Is gold money? Venezuelan President…

Where Will Gold Go From Here?

Where Will Gold Go From Here?

The Fed recently issued a…

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