InstaForex

August 23, 2021

Gold Takes Advantage Of USD Weakness To Return To Shine

 A good start to gold trading earlier in the week after the precious metal posted a surge amid the US dollar’s ​​decline.


In the Asian session, gold traded higher at $ 1,787 per ounce, up from the lowest level it touched today at $ 1,776. Gold futures were positive at $ 1,789 an ounce.


The greenback, meanwhile, cut back on profits last week by a slight decline over its main rivals.



The decline was influenced by a statement by Dallas Federal Reserve (Fed) President Robert Kaplan who said Friday that he may need to adjust his outlook to make a reduction if the delta variant slows economic growth materially.


Previously, Kaplan was among the policymakers who strongly supported the proposal to initiate a faster reduction in bond purchases by the central bank.


In addition, the depreciation of the US dollar may also be due to investors looking to take profits after driving the king of the currency to a 9 -and -a -half -month high last week.


Fed Chairman Jerome Powell’s speech at the annual event of the Jackson Hole symposium this week will be the main focus of the market to get a clearer indication of the direction of the central bank’s monetary policy and his views on the rising delta variance.