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May 31, 2021

Really Crazy GOLD!

 The gold -priced metal remained strong after being shown by US personal consumption expenditure (PCE) inflation data which posted encouraging readings in April.

The Federal Reserve’s (Fed) favorite inflation indicator, the PCE surged stronger in April to a record 3.1% from a year ago, the highest since 1992 and exceeding the central bank’s consumer price target by 2%.

In the Asian session, the precious metal traded higher around $ 1,910 an ounce, the highest in four months.

Investors continue to increase their holdings of gold safe-haven assets as a hedge to inflation, amid mounting inflationary pressures and more further stimulus measures to be launched by the US.

The US dollar, on the other hand, rebounded even though it initially rose higher after seeing optimistic data readings, in line with the movement of 10 -year US bond yields.

Gold prices continued to advance, heading to the highest level ever seen this year after recovering more than $ 220 since the lowest fall recorded in late March.

Analysts now expect the $ 1,950 per ounce price to be the level that will be the next gold target, after it managed to break the $ 1,900 level last week.