This is the Fate of Gold After a Severe Plunge at the Beginning of the Week - Kakiforex.com - Financial Market Media No. 1 in the World This is the Fate of Gold After a Severe Plunge at the Beginning of the Week This is the Fate of Gold After a Severe Plunge at the Beginning of the Week
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August 11, 2021

This is the Fate of Gold After a Severe Plunge at the Beginning of the Week

 Gold continued to trade around four-month lows, weighed down by high U.S. bond yields and a strong U.S. dollar as markets cautiously awaited the release of U.S. inflation data.


In the Asian session, the precious metal traded hovering at $ 1,731 per ounce, while futures were slightly positive at $ 1,732 per ounce.


The movement of gold is seen more cautiously ahead of the release of inflation data which is expected to show slower growth last month. It will serve as a guide by investors for further policy -making action by the US central bank.



Two Federal Reserve (Fed) policymakers said on Monday, that inflation is already at a level that could reach a test level for the start of an interest rate hike.


However, policymaker Charles Evans has a different opinion saying the current surge in inflation should not prompt the central bank to tighten monetary policy ahead of time, and more employment data needs to be seen before making changes.


Meanwhile, 10-year U.S. treasury yields rose to their highest level since mid-July, at 1.35% after the U.S. Senate passed a large U.S. infrastructure bill, helping to strengthen the U.S. dollar.