Gold prevails for a fourth month high; Fed statements pushes rebound
Gold prevailed yet again for a fourth month as a Federal Reserve official went on record disparaging prospects of inflation, hence piling pressure on Treasury yields.
In an interview, Fed Vice Chair Richard Clarida was quoted saying that the signs of inflation would “prove to be largely transitory”. This is in line with the latest dovish comments from the United States Central bank. Said statement sent the yield on 10-year notes to the lowest in two weeks.
The losses of the current year had been erased by the bullion as a weaker dollar and lower bond rates revitalized demand for the precious metal. The global economy’s concerning attempt at exiting from the pandemic had also caused a renewed push to the safe-haven asset.
At 10:32 AM in Shanghai, Gold climbed to 0.4% to a total of $1,906.26 an ounce. This month, the metal had been recorded to spurred to 7.8%, potentially its biggest gain since July the year before. In additon, silver, platinum and palladium also climbed in value, as a gauge of the dollar steadied.