The gold prices continue to soar on local highs with the support of current news, which increased demand for asset stashes. On Friday, the gold quotations were highest in 10 months, touching resistance at $1300 for a Troy Ounce.
Interest in the gold asset was as a result of a surge in terrorist activity in Europe as well as the decision of the US president Donald Trump to disband the Infrastructure Advisory Council and the two advisory councils of business leaders. The market stakeholders believe that the ongoing staff purging in the Trump administration will further impede the implementation of the fiscal initiatives of the American president.
Another factor contributing to the increased demand for precious metals worth highlighting is a weak dollar, which got disappointed by the protocol of the last meeting of the US Federal Reserve. As it turns out, the Central Bank’s executives had divided views on the dynamics of the increase in interest rates, at the July meeting of the Federal Reserve. Decreased inflation forced some Central Bank executives to propose a hold off on raising rates. Other committee members noted that a strong labour market could accelerate inflation above the target level of 2%.
Traders expect to get more specifics on the prospects for the US monetary policy at the annual symposium in Jackson Hall which starts this Thursday. If the US currency fails to get support from the Central Reserve’s tight rhetoric, gold will overcome the bar set at $1300.