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Dovish Global Central Bank Policy Commitment To Keep Gold Prices Firm

By Abhishek BansalCommoditiesMay 07, 2021 05:23AM ET
www.investing.com/analysis/dovish-global-central-bank-policy-commitment-to-keep-gold-prices-firm-200578328
Dovish Global Central Bank Policy Commitment To Keep Gold Prices Firm
By Abhishek Bansal   |  May 07, 2021 05:23AM ET
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Gold and silver prices rallied this week following weakness in the US dollar and rising inflation concerns. US 10-year inflation expectations climbed and the breakeven inflation rate reached a new 8-year high of 2.492% which is supportive for gold prices. 

However global economic data was bearish for gold prices. US weekly initial unemployment claims fell indicating a stronger labor market. Also, Eurozone March retail sales rose more than expectations. German March factory orders were also higher than anticipated. 

BOE Governor Bailey said uncertainty about the pandemic remains a risk to the UK and that the BOE has no new thoughts on unwinding QE. Dovish comments are supportive of gold prices. 

However gold prices received a setback when Dallas Fed President Kaplan said the risk to the US GDP forecast is likely to the upside, and he wants to see asset tapering talks start sooner rather than later. 

Gold prices are likely to remain firm due to the worsening Coivd-19 pandemic situation which supports dovish central bank policy measures. Gold may trade firm while above key support level of 10 days EMA of $1,791 and 20 days EMA of $1,772. It may find stiff resistance near $1,828-$1,841.

Dovish Global Central Bank Policy Commitment To Keep Gold Prices Firm
 

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Dovish Global Central Bank Policy Commitment To Keep Gold Prices Firm

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Disclaimer: Mr. Abhishek Bansal is a new-age, first-generation entrepreneur, and the Founder Chairman of Abans Group, a quintessential diversified business group, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, and Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management.
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