Why Gold Rises, Even Though USD Strengthens? - Kakiforex.com - Financial Market Media No. 1 in the World Why Gold Rises, Even Though USD Strengthens? Why Gold Rises, Even Though USD Strengthens?
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July 1, 2021

Why Gold Rises, Even Though USD Strengthens?

 Gold posted gains although on the other hand, the US dollar also traded stronger against most major currencies in the Asian session.


After ending June trading with a disappointing performance since November 2016 and hitting a two -and -a -half -month low of $ 1,750, the precious metal is seen rising again to around $ 1,774 an ounce.


This resurgence may be supported by current sentiment in the market following the spread of Delta coronavirus variants resulting in infection rates rising rapidly in some countries, particularly Australia and the UK.



These concerns make investors rush to seek protection from safe-haven currencies and assets.


Economic reopening efforts in the UK may be under threat after the country reported the highest daily cases since January on Wednesday, showing an increase of 26,068 cases of infection.


Despite the increase, gold's gains were also stagnant due to expectations that the tightening of US monetary policy may take place faster than expected.


Dallas Fed President Robert Kaplan said he wants the reduction in asset purchases (tapering) done sooner before the end of the year.