Safe haven bids and consecutive rallies pushed Gold to breach $ 1910 an ounce, a level last seen in January 2021, amidst a retreating Dollar and whipsawing Crypto trade. The yellow metal rose 0.38 percent from its previous close and touched $1910 in intra-day trade.
Silver prices too climbed 0.23 percent over previous close to trade at $28.044.
Dollar index and US treasury yields remained subdued at 89.7 and 1.56 percent respectively as diminished inflationary fears appeared to re-ignite risk-on behavior in stock markets world-wide.
Gold’s return to the $ 1900 levels after about four months has been both remarkable and tortuous as the twin pains of inflation and pandemic roiled markets across the globe.
Panic surrounding emergence of highly transmissible strains of the corona virus and increasing geographies with unabated levels of the disease, attracted safe haven bids for the metal in the past two months and changed the course of its downward trajectory that was triggered with the promising vaccine rollout.
The extremely dovish rhetoric by Fed Officials in response to the sudden spike in the key inflationary indicators in the U.S, too contributed to the metal’s slow and arduous progress to the 1900 levels.
Gold’s potential path in the days to come would most likely be influenced by whether it can act as a hedge against inflation, more so if the so called transitory inflation indicators in the U.S. re-appear to goad the Fed into a hawkish posture.
The inflation, growth and jobless claims data due later in the week could provide more cues in this direction.
The material has been provided by InstaForex Company – www.instaforex.com