Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold Up, But Near Multi-Month Lows as Fed Asset Tapering Bets Increase

Commodities Aug 10, 2021 12:08AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Gold was up on Tuesday morning in Asia. However, the yellow metal remained close to multi-month lows, thanks to a strengthening dollar and increasing bets that the U.S. Federal Reserve will begin asset tapering sooner than expected.

Gold futures gained 0.68% to $1,738.25 by 12:05 AM ET (4:05 AM GMT), after falling to their lowest since Mar. 31 on Monday. The dollar, which usually moves inversely to gold, inched up on Monday and remained near a more-than-two-week high.

U.S. Treasury yields rose to a more than three-week high as strong jobs data from the U.S. pointed towards an improving market. The latest U.S. jobs report, released during the previous week, said non-farm payrolls rose by 943,000 while the unemployment rate declined to 5.4% in July.

Fed officials also hinted that the central bank could begin returning to pre-COVID-19 settings earlier than expected.

Atlanta Fed Bank President Raphael Bostic said on Monday that asset tapering could begin as soon as the fourth quarter, but that it could begin even earlier if the jobs market maintains its recent pace of improvement.

Bostic’s colleague, Boston Fed Bank President Eric Rosengren, said the Fed should announce in September that it will begin reducing its $120 billion in monthly purchases of Treasury and mortgage bonds in the fall.

In other precious metals, silver was steady at $23.43 per ounce after falling to an eight-month low during the previous session. Platinum and palladium inched up 0.1% to $980.81 and $2,603.20 respectively.

Gold Up, But Near Multi-Month Lows as Fed Asset Tapering Bets Increase
 

Related Articles

Norway pledges 1 billion euros to support Ukraine
Norway pledges 1 billion euros to support Ukraine By Reuters - Jul 01, 2022 9

(Reuters) - Norway on Friday pledged 1 billion euros ($1.04 billion) to help Ukraine defend itself, support people in need and for reconstruction in the wake of Russia's invasion....

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
simone scelsa
simone scelsa Aug 10, 2021 2:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why would asset tapering affect the gold price? The amount of dollars sitting in bank reserves has never been higher, the fact that the FED will add a little bit less every month to this pile would not improve the position of the dollar in the long term. Surely there is another explanation
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email