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Gold heads for biggest monthly profit since July with inflation bet

Gold is heading for the biggest monthly move since July, focusing on inflation risk ahead of key US employment data scheduled for later this week, providing clues to economic recovery.

Some Federal Reserve Boards say that recent price pressures are expected as the economy resumes amid stagnant demand and should be temporary as supply glitches subside. The PCE price index used by the Federal Reserve Board for inflation targeting rose 3.6% year-on-year, the largest rise since 2008.

Bullions wiped out 2021 losses and among the signs of rising inflation and potentially uneven economic recovery due to the resurgence of coronavirus cases in some countries, the highest performing metal in May It is one. May after hedge funds and other large speculators pushed gold’s net long position to its highest level since early January, with bullion-backed exchange-traded fund holdings declining for the third straight month Investor interest has returned as a result of the rise in the number of investors.

“For gold price performance for a variety of reasons, including a weaker US dollar, a slight drop in bond yields, and the surprising consumer price index in the US has begun to raise inflation concerns,” said John Finney, business development manager in Sydney. It was a wonderful month. ” Base Bullion Dealer Guardian Gold Australia. “There is growing concern about Covid’s new wave in Southeast Asia, and investors’ concern about the delay in global recovery.”

Spot gold last traded on Monday morning for about $ 1,905, up 7.8% this month. Prices rose to $ 1,912.76 last week, the highest since January 8. Silver, palladium and platinum all rose. The Bloomberg Dollar Spot Index has fallen for the second straight month.

The US Non-Agricultural Employment Report, due out on Friday, marks a crucial moment for investors. evaluate Was the surprisingly lukewarm increase in work seen last month a temporary blip, or was it the beginning of something more persistent?

“Gold surpassing $ 1,900 has clearly boosted demand for precious metals,” said Howley, an economist at OCBC Chinese Banking Corporation. $ 1,975 level. “

Source: News24

Gold heads for biggest monthly profit since July with inflation bet

Source link Gold heads for biggest monthly profit since July with inflation bet

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