The weakness of the dollar was partly responsible for today’s gains, but most of the gains due to market participants were bidders of the precious yellow metal as active buyers. The most active Silver base Cox contract of May 2021 received $ 0.28, and is currently fixed at $ 25.525.
In both gold futures and spot prices, it was the weakness of the dollar that partially supported higher gold and silver pricing. The Dollar Index broke 40 points or -0.40% and is currently stable at 92.10. According to KGX (Kitco Gold Index) spot gold is currently stable at $ 1755.80 which is a net profit of $ 18.20 on the day. Participants in the close inspection market bid the precious metal more than $ 11.10. Concurrent dollar weakness contributed $ 7.10 in addition to the value of troy ounces of gold.
Bitcoin futures trading on the Chicago Mercantile gained $ 1735 today, which is extremely strong with a single coin valued at $ 58,045.
Most of today’s gains in precious metals and US equities are directly related to the minutes of last month’s FOMC meeting, which was released yesterday. Furthermore, the Federal Reserve is not alone in its mandate to drastically lower its Fed’s funds rate, which is currently set between 0 and.%. Additionally, they continue to add an additional $ 120 billion per month to their asset balance sheets through the purchase of United States bonds and mortgage-backed securities.
The Federal Reserve is not alone in its monetary policy mandate. On Tuesday, the IMF supported the Fed’s decision to be patient and did not shake the boat by raising interest rates too quickly. The International Monetary Fund made it clear that they intend to maintain a highly accommodative monetary policy. In his latest Global Financial Stability Report he has sent a strong message that there is a need for the current work of central banks worldwide. Both institutions are fully aware that we live in a global economic world in which a positive movement in any major country has implications for other countries, and that rates can rise very rapidly and in the United States The impact of the economic downturn may be lessened. in Europe.
Today Chairman Jerome Powell attended a virtual spring meeting sponsored by the International Monetary Fund and the World Bank. He acknowledged that a number of factors are coming together to support a resounding outlook for the economy in the United States. Noting that those factors played a key role in getting the country on track “to allow the economy to open up as quickly as possible”. However, he spoke of the warning, saying that many Americans who were out of work would struggle to find new jobs because some industries would likely be smaller before the epidemic, with a statement saying “we remember It’s important to keep. ” There is no going back to the same economy. It will be a different economy. ”
While both the IMF and the Federal Reserve continue to maintain their very aggressive policies, they can have a profound and negative impact on both the euro and the United States dollar. It is most likely that both of those currencies will depreciate over time and in turn have created new concerns about the rising inflation rate.