Gold Experiences Slow Gains in One Week
By Daisy Joseph
The yellow metal is a non-interest bearing asset that enjoys the attention of the investors all the time. However, when the global currencies show their strength in the market, the interest in gold naturally goes down. Investors want to make profits using stocks and Treasury bonds when the currencies strengthen in the market.
During last week, gold prices suffered badly as the dollar strengthened. The comments from Janet Yellen are closely watched. The hawkish sentiments of the Fed a few weeks ago has increased the bets in favor of another rate hike. As a result, dollar and Treasury bonds gained during trading.
On Wednesday trading, the gold price increased slightly. It was able to recover from its lowest point in months. Gold futures gained 0.37% and were trading at $1219.23 in the morning trading session. The economic data from the US was strong and inflation in China was lower. The current account surplus in Japan also reduced better than the forecast.
Other commodities such as iron and oil also gained slightly in the market. Currently, the US dollar is stable in the market because of uncertain political conditions in the US. On Wednesday, US dollar index lost 0.11% and subsequently, gold index gained 0.19%.
After the rate hike in June, the Fed has been clear that there will be one more interest rate hike in the future. The subdued inflation has worried the investors because the officials may not be interested in tightening the policy further.
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