November 5, 2021

Gold Make Things! Suddenly Soaring High After a Deathly Plunge

 Gold prices made a rebound after plunging to a three -week low as investors awaited the release of US NFP jobs data tonight.

The increase follows policy announcements by the Central Bank of England (BOE) and the Federal Reserve (Fed) which show they are in no hurry to raise interest rates.

In the Asian session, spot gold traded at $ 1,794 an ounce, rising again after plunging to a low on Wednesday. Gold futures traded at $ 1,795 an ounce.

Gold initially declined after the Fed announced a reduction in its monthly bond purchases, but rebounded after investors re -evaluated the views of policymakers who still wanted to wait to raise interest rates.

The BOE also took a similar step by dismissing investors ’expectations for a rate hike at yesterday’s policy meeting, by keeping interest rates unchanged.

Moreover, although the US dollar also displayed a strengthening but the yellow gold metal still gained gains to increase with support from the decline in US treasury yields 10 years.

Investors are now focusing on the release of US NFP employment data in the New York session which could potentially bring greater movement for gold trading ahead of weekend trading.