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Gold Vaults Above $1,900 First Time in 20 Weeks

CommoditiesMay 25, 2021 05:15PM ET
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By Barani Krishnan

Investing.com - Gold hit $1,900 highs on Tuesday for the first time in 20 weeks as retreating U.S. bond yields and the dollar helped the yellow metal reach a pivotal point for longs in the yellow metal hoping to reprise last year’s all-time peaks.

Gold for June delivery on New York’s Comex rose to $1,901.15 before settling at $1,898, up $13.50, or 0.7%, on the day.

Prior to this, the last time gold futures got to $1,900 was on Jan. 9. Between that and Tuesday, gold had raked a near 11-month bottom of under $1,674.

The spot price of gold, reflective of real-time trades in bullion, was at $1,900.02 by 4:20 PM ET (20:20 GMT) after an intraday high at $1,900.28.

Traders and fund managers sometimes decide on the direction for gold by looking at the spot price — which reflects bullion for prompt delivery — instead of futures.

Yields tied to the 10-year Treasury note was down 3.4% to 1.55.

The Dollar Index, which pits the greenback against the euro and five other major currencies, was down 0.2% to 89.67.

The 10-year yield spiked to highs at above 1.7% between mid-March and mid-April and the Dollar Index ran up to above 92 amid a flurry of data pointing to heightened inflation as the U.S. economy sprinted from the clutches of the Covid-19.

The Fed acknowledges the price pressures arising from bottlenecks in U.S. supply chains struggling to cope with demand in an economy reopening after months of pandemic-suppression.

But the central bank’s policy-making Federal Open Market Committee, led by Chairman Jerome Powell, insists that these inflationary pressures are “transient” and will fade as the economy makes a full recovery from the pandemic. The FOMC also does not see the immediate need to raise interest rates.

In fact, until two weeks ago, almost every data point from consumer to producer prices as well as industrial production pointed up. Prices of virtually everything, from houses to the lumber that goes into building them, had soared as well, scaring economists into believing that inflation growth in 2021 could be the highest in 35 years. In recent days though, there had been an evident cooling of such trends that pushed yields and the dollar back.

One other reason for gold’s vault into $1,900 territory on Tuesday: a still weak Bitcoin, which was down nearly 4% to below $38,000.

Funds flowed out of gold in droves earlier this year, reaching for Bitcoin which soared beyond $64,000 in April.

“Bitcoin was gold’s kryptonite for a good part of the first four months of (the) year, but environmental and regulatory concerns have put a tentative end over its relentless buying,” said Ed Moya, analyst at online trading platform OANDA.

Gold Vaults Above $1,900 First Time in 20 Weeks
 

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Comments (10)
Casino Crypt
CasinoCrypt May 25, 2021 7:41PM ET
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Love the comments about crypto. They follow a map to ruin.   History repeats its self in fascinating ways . Hence why I been doubling down on gold for last decade.
Marshall Gleghorn
Marshall Gleghorn May 25, 2021 7:41PM ET
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Thats your opinion, which is just that. People are making money both ways, so how you only see it as a map to ruin is beyond me. Dont knock another mans hustle
Anastasia Dean
Anastasia Dean May 25, 2021 6:02PM ET
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I just got into bitcoin trading and I made my first profit, wish I knew about this earlier
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kate mccarthy
kate mccarthy May 25, 2021 6:02PM ET
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You are right the market is profiting if you are really a good broker or account manager
kate mccarthy
kate mccarthy May 25, 2021 6:02PM ET
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Bitcoin is the future it's really a big chance to make money
James Denzel
James Denzel May 25, 2021 6:02PM ET
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I've made over $236,000 trading Bitcoin for real it's a life saver
Rita Bonds
Rita Bonds May 25, 2021 6:02PM ET
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Did you trade alone? Actually I have lost so much trying to trade on my own,looking for a proffesional to start my trade with
James Denzel
James Denzel May 25, 2021 6:02PM ET
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Yh I work with a trusted and sincere broker expert Mr.Marshall who managed and return profits
Rathnayake Rangana
Rathnayake Rangana May 25, 2021 5:41PM ET
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HI Sir, Edward Chong - How do you think about in this week ?  What will be the price of Gold will be growth ( +1899$ ) or down than current Price ( May be 1872$ to 1890$ ) Since world lot of countries are facing the Covid -19 Pandemic situation and they are trying to close their countries. ( Specially Asians. )   How to demand this ?  So kindly Explain to us Sir......
Survey Berhadiah
Survey Berhadiah May 25, 2021 5:38PM ET
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tomorrow minimum Gold closing 1920
Ibrahim Naim
Ibrahim Naim May 25, 2021 5:38PM ET
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probably may reach 1920 but by next week.
Rathnayake Rangana
Rathnayake Rangana May 25, 2021 5:31PM ET
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Wow... But i need to know....What will be the price of Gold in future ? growth ( +1899$ ) or Less than current rate ( May be 1872$ - 1890$ ) Let me know ?
gold monkey
gold monkey May 25, 2021 4:12PM ET
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hello sir..how do you think about this end of May ? i holding my buy at 1950 aince nopember 2020 sixt month ago..will this end of May reach 1950? thanks before
Edward Chong
Edward Chong May 25, 2021 4:12PM ET
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answer is definitely no.
Barani Krishnan
Barani Krishnan May 25, 2021 4:12PM ET
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Gold Monkey: Admire your resilience in holding a long position like that in times of distress like this. Hopefully, you will see some relief soon and it will get either to that level or beyond -- though there is no telling if it will fall back.
peter neal
peter neal May 25, 2021 3:21PM ET
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Thanks
adnan shaikh
adnan shaikh May 25, 2021 3:09PM ET
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Wow . Good article.
fenster fenster
fenster fenster May 25, 2021 3:06PM ET
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Why Barrick gold stock is down?
tom gwinn
tom gwinn May 25, 2021 3:06PM ET
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barrick is a company that mines gold. gold price going up wont always translate to miners going up
Hamilton Leftleg
Hamilton Leftleg May 25, 2021 3:06PM ET
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tom gwinn  haha yes it will its their only revenue...
Lars Hellman
LarsH May 25, 2021 3:06PM ET
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Barrick sell their gold the minute it's ready. No gold in store.
Meru Pet
Meru Pet May 25, 2021 3:06PM ET
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it is the same for most miners, i would be patient. (i am in the same situation).
Hani Josi
Hani Josi May 25, 2021 2:51PM ET
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wow
 
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