What is the case of Gold plunging badly? - Kakiforex.com - Financial Market Media No. 1 in the World What is the case of Gold plunging badly? What is the case of Gold plunging badly?

April 26, 2021

What is the case of Gold plunging badly?

 Gold -priced metals rose higher on Monday, helped by weak US dollar trading ahead of the FOMC policy meeting this week.

In the Asian session, gold traded around $ 1,780 an ounce, below the two -month high of $ 1,797 it reached last week.

A small rise in 10 -year U.S. bond yields and the U.S. dollar on Friday caused a sharp plunge in gold prices, having seen an increase in U.S. economic data.

Data published by IHS Markit revealed on Friday that manufacturing activity grew at its highest rate in April by rising to 60.6 from 59.1 in March.

In addition, the market was also seen with US new home sales data showing a significant increase in March of 20.7%, compared to expectations for an increase of 12.8%.

The decline in gold prices may also be due to investors wanting to take profits before the close of weekend trading.

However, the rise in US bond yields was short -lived, giving gold trading a chance to rebound in today's Asian session.

This is because, even with the improvement recorded in US economic data, analysts still expect the Federal Reserve (Fed) to make no changes in its monetary policy easing at this week’s FOMC policy meeting.