Advertisement
Advertisement

Gold Bugs Face Herculean Task, Over a Slightly Dovish U.S Fed

By:
Olumide Adesina
Published: Apr 8, 2021, 07:25 UTC

Gold prices remained relatively firm at the fourth trading session of the week as gold traders kept track of movements in the greenback and bond yields, coupled with key insights gauging the Federal Reserve’s stance on rising inflation.

Gold

In this article:

Traders are presently digesting the minutes from the Fed’s most recent meeting released some hours ago, revealing monetary officials were in unison on the need for more positive signs at the world’s largest economy before scaling back their massive bond-buying program.

Consequently, recent price actions suggest, traders are keeping their bets on the sidelines a further comment from Chair Powell, who is scheduled to hold a panel about the global economy today, will affirm if recent impressive economic data might mean, a hawkish move in the mid-term.

The key for the yellow metal’s futuristic price will be how much inflation outpaces with what effect that has on real Treasury yields taking to account the yellow metal has plunged by more than 8% in three months amid optimism over rising bond yields and the growing appetite for Bitcoin often referred to as the new digital gold as weakened the appeal for gold because the bullion asset doesn’t earn interest and riskier assets of late have performed incredibly better.

Although the precious metal struggled to stay above $1740, gold bugs couldn’t gather enough gas to stay on course as the US Fed minutes were extremely balanced and weren’t as dovish as some market sentiments had anticipated.

Digger deep into the precious metal price actions suggest gold bugs are having a hard time, breaching above $1,750 an ounce price level, with the yellow metal ranging around the $1730 to $1745 area over the last two days.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. He is a Member of the Chartered Financial Analyst Society.

Did you find this article useful?

Advertisement