Combination of factors has contributed to gold prices
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Combination of factors has contributed to gold prices

The low last week was $ 1677. Gold prices have risen by about $ 70 in about a week. The US dollar has been in a defined downtrend in the last four trading days, after trading at a high of 93.50 on 31 March and settling at 92.29 today, a decline of 1.12% in the last four trading days.

The US current yields on 10-year Treasury notes have also fallen and are currently yielding around 1.657%. 5:15 PM EST Based on gold futures, the most active June 2021 Comex contract is currently set at $ 1744.40 after factoring in gains of $ 15.60 (+ 0.90%).

Spot Gold also had a respectable lead today. According to KGX (Kitco Gold Index), the physical gold bid is currently $ 1743.60 after factoring in today’s profit of $ 15.10. On closer inspection, the dollar’s weakness provided $ 5.50, with the remaining gain of $ 9.60 directly bidding the precious yellow metal to market participants.

Silver also strengthened dramatically today, with the May 2021 Comex contract receiving $ 0.43 (+ 1.73%) and is currently fixed at $ 25.21. Like gold, most of today’s profits are directly due to market participants actively buying. The spot silver is stable at $ 25.15 after the fact in today’s profit of $ 0.31. According to KGX, dollar weakness accounted for only eight cents of today’s gains, with the remaining $ 0.23 being the direct result of market participants actively purchasing precious white metal.

Another primary factor currently affecting the price of precious metals today is the statements made by the European Central Bank. According to Marketwatch, “International Monetary Fund officials on Tuesday supported the Federal Reserve’s decision to be patient about withdrawing its easy monetary policy stance despite a better outlook for the US economy.”

In an article written by Greg Robb, titled “IMF Facts Go-Slow Fed”, he said that the latest global financial stability report underscored the need for monetary policy to remain systematic. In fact, the Federal Reserve continues its extremely systematic monetary mandate. It continues to add $ 120 billion monthly to its asset balance sheet and keeps interest rates between 0 and.%.

IMF chief economist Geeta Gopinath was asked whether the Federal Reserve should change its current policy. He said that “the Fed’s policy of moving slowly is in line with its mandate.”

In other words, central banks around the world will continue to provide a monetary policy that will increase the likelihood of a strong economic recovery worldwide. More importantly, both the IMF and the Federal Reserve have resolved to remain transparent and not change their current mandate without giving adequate advance warning. These actions by central banks around the world should continue to depreciate their major currencies and, as such, provide a faster market sentiment for precious metals.

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About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

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