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February 24, 2021

Hold on GOLD! Don't Fall Again

 Gold prices are trying to maintain their position above the $ 1,800 ounce level, amid the weakness of the US dollar following Federal Reserve (Fed) Chairman Jerome Powell's statement on current monetary policy.

Ahead of the opening of the European market session, gold precious metals traded hovering around the price of $ 1,807 per ounce, while gold futures were slightly weaker at $ 1,806 per ounce (2.30pm Malaysian time).

Powell, who testified before the U.S. Senate Banking Committee on Tuesday, made it clear that there would be no interest rate hike or decline in the future.

To support his statement, he added that the current monetary policy is still needed to help the economic recovery which is seen as turbulent and still far from being achieved.

This statement has caused the greenback dollar to continue to trade weaker against its main competitors, while the benchmark US 10-year treasury yield has also declined.

Meanwhile, the U.S. House of Representatives is reportedly voting for President Joe Biden's $ 1.9 trillion stimulus package on Friday which is expected to get easy approval before it is submitted to the Senate for a vote.