AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Gold prices inched higher on Monday.
- Prices surpassed the mark of US$1,800 per ounce, the highest since August 2021.
- Investors are now focusing on the follow-up US Fed meeting is planned for 2-3 November.
Gold prices inched higher by nearly 1% on Monday followed by a plunge in the US bond yields and continued inflation worries that has bolstered the demand for the safe-haven asset before the central bank meeting. December delivery gold futures surpassed the mark of US$1,800 per troy ounce to trade at US$1,805.35 per ounce, down 0.07% as of 26 October 2021 at 12:50 PM AEDT. The prices of gold plummeted more than 6.17% in the last one year.
The benchmark 10-year US Treasury Yields plummeted to a session low of 1.62%, minimizing the opportunity cost for holding non-interest paying gold.
US banks to reduce their support to the economy
The prices of gold eased off their September peaks on Friday followed by the most recent comment of U.S. Fed Chair Jerome Powell. He reiterated that high inflation would likely decrease next year, easing gold prices from September highs. Additionally, he also said that the central banks in the US should start reducing their support to the economy by minimising its asset purchase soon.
Source: Copyright © 2021 Kalkine Media
Investors are now focusing on the meetings of the Bank of Japan and European Central Bank, scheduled on Thursday while the follow-up US Fed meeting is planned on 2-3 November.
Bottom Line
Gold prices edged up on Monday followed by a plunge in the US bond yields and comments of U.S. Fed Chair Jerome Powell reiterating that high inflation would likely abate next year and the central banks in the US should start reducing their support to the economy.
