August 16, 2021

Where is the price of gold going today?

 The yellow gold metal held on to gains at the end of last week’s trading that saw a 10 -year decline in U.S. treasury yields and the U.S. dollar.

In the Asian session, gold prices traded little changed around a one -week high of $ 1,777 per ounce, while gold futures traded at $ 1,780 per ounce.

Investor caution returned to the currency market after data on Friday showed U.S. consumer sentiment fell earlier this month to its lowest level since 2011, according to a University of Michigan survey.

The data has dragged US bond yields lower and impacted greenback trading to decline to one -week lows against most major currencies.

This follows an increase in Covid-19 cases in the U.S. and around the world resulting in a lack of confidence for a stronger economic recovery.

Meanwhile, statements by Federal Reserve policymaker Neel Kashari also affected the USD. Kashari said that he would like to see some more strong employment reports before implementing a reduction in his asset purchases.

This indicates a split among Fed policymakers to start implementing cuts. The minutes report of the FOMC policy meeting this week will be the next market focus for a clearer indication of the reduction by the Fed.