Gold rises as dollar extends drop with stimulus outlook in focus

Spot gold climbed 0.3% to $1 774.79 an ounce at 6:12 a.m. in London, after rising 0.3% Tuesday.
Image: Bloomberg

Gold rose for a second day as the US dollar extended declines, with investors waiting for comments from Federal Reserve officials this week which could provide insight into the prospects of tighter monetary policy.

Bullion has fluctuated recently as markets assess the possibility of earlier-than-expected tightening to contain inflationary pressures. Upcoming speeches and discussions by officials including Randal Quarles, Mary Daly and Chair Jerome Powell could provide more clues, after Governor Christopher Waller said Tuesday the Fed should begin tapering its bond-buying program next month, though interest-rate increases are probably “still some time off.”

Waller added the caveat that “if my upside risk for inflation comes to pass, with inflation considerably above 2% well into 2022, then I will favour liftoff sooner than I now anticipate.”

US traders are now pricing a full rate hike into the Fed’s September policy meeting next year. But many of the world’s central banks, with the exception of the European Central Bank, are expected to move at a faster pace.

“Gold is trading above what we deem as fair value at this moment, and I believe this premium is due to the market pricing inflation fears,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. “With the Fed due to begin monetary normalisation, I still believe gold will face more downward pressure in the coming year.”

Spot gold climbed 0.3% to $1 774.79 an ounce at 6:12 a.m. in London, after rising 0.3% Tuesday. The Bloomberg Dollar Spot Index retreated 0.1% after dropping 0.3% in the previous session. Silver advanced, while platinum steadied and palladium edged lower.

© 2021 Bloomberg

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Reporting on a 0.3% rise in Gold price? Really?

Is that not a waste of time?

What about reporting on a > 5% rise or fall on a asset or resource, that makes more sense.

The FED are on another planet. The 10 year rate has already increased by 5% in response to the inflation, the impact of which is just getting started. They must be too busy manipulating, as they assist the transfer of wealth to the less than 1%. When the control is lost it will be the plus 99% that take the fatal blow and become wards of the asset-rich controllers. The new world order will be instantly green and democracy free whilst the population explosion will go into full speed reverse. Security contracting will be the biggest business.

The 10 year rate has increased from 1.13% on 4th August 2021 to 1.67% being 48% in 11 weeks.

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