Bengaluru — Gold prices bounced back on Monday from a nine-month low hit in the previous session as the dollar softened, while passage of a long-awaited US coronavirus stimulus package boosted the bullion’s appeal as a hedge against inflation.
Spot gold rose 0.7% to $1,712.46 per ounce by 4.24am, after hitting its lowest since June 8 at $1,686.40 on Friday. US gold futures climbed 0.7% to $1,709.90.
Improved sentiment from the passing of the $1.9-trillion stimulus and a dip in US dollar index are helping gold prices, said DailyFX strategist Margaret Yang. The US Senate on Saturday passed President Joe Biden’s $1.9-trillion Covid-19 relief plan, with the final bill including $400bn in one-time payments of $1,400 to many Americans.
“Inflation is definitely going to go up” because of rising oil and base metal prices, Yang said, adding that some of the individual cheques may also go into gold exchange traded funds investment to hedge against future inflation.
The dollar fell against the currencies of major commodity exporters as investors increased bets on countries that will benefit from rising prices for oil, metals, and other goods. US 10-year yields, easing from an over one-year peak hit on Friday, also provided support.
“Gold has been undercut by cheerful economic optimism over a robust economic recovery and faster than anticipated rises in bond yields,” Stephen Innes, chief global market strategist at financial services firm Axi, said in a note.
However, “the [gold] market may have fallen too steeply, too quickly”, he added. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to a 10-month low on Friday.
Silver rose 2.3% to $25.76 an ounce. Palladium climbed 0.1% to $2,341.62. Platinum gained 1.1% to $1,142.60.
This content was originally published here.
Gold prices eased from a one-week high as the US dollar rose on souring risk appetite, amid speculators slashing their…
When you will receive your order depends primarily on three factorsIn the event, however unlikely, that your order is…
With rising gold prices, Great Western Exploration may present an interesting opportunity to take advantage. Great…
Share Great Content for Our Resource Section
MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.
Have a question or comment? Email us at: firstname.lastname@example.org