Gold Shows Decline, So What? - - Financial Market Media No. 1 in the World Gold Shows Decline, So What? Gold Shows Decline, So What?

May 12, 2021

Gold Shows Decline, So What?

 Gold lost upward momentum as U.S. dollar trades and U.S. 10 -year treasury yields returned to show gains ahead of the release of U.S. inflation data tonight.

The price of gold, which initially took advantage of the fall of the U.S. dollar following disappointing NFP jobs data last week, eased in the New York session to hit $ 1,818 an ounce before returning to reduce its losses.

In the Asian session, spot gold traded around $ 1,829 an ounce, not far from the 3 -month high it has reached since last week.

The decline in gold appears to have come after the Federal Reserve’s (Fed) inflation expectations survey which showed that the one -year price growth estimate was at 3.36% in April compared to 3.24% previously, the highest since September 2013.

Consumers also expect petrol, food and rental prices to rise to 9.18%, 5.79%and 9.49%, respectively.

Rising inflation estimates indirectly pushed US bond yields higher at 1.625%. Meanwhile, the dollar index rose slightly to 90.25 against most major currencies.