Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold Up, Just Below Four-Week High, Over Powell Dovish Stance

CommoditiesJul 15, 2021 01:09AM 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 Thursday morning in Asia but slipped just below the four-week high hit in the previous session, as U.S. Federal Reserve Chair Jerome Powell signaled the central bank’s “powerful support” for economic recovery.

Gold futures edged up 0.15% to $1,827.75 by 1:03 AM ET (5:03 AM GMT), remaining above the $1,800 mark. The dollar, which usually moves inversely to gold, inched up on Thursday.

On day one of a two-day testimony before the House of Representatives Financial Services Committee on Wednesday, Powell said that monetary policy would remain accommodative. While insisting inflationary pressures were transitory, he added that the Fed expects to continue its bond-buying until there is “substantial further progress” in the job market, predicting that interest rates will likely remain near zero until at least 2023.

Powell’s second day of testimony will take place later in the day.

The Bank of Korea kept its interest rate unchanged at 0.5% as it handed down its policy decision earlier in the day. The Bank of Japan will wrap the week up by handing down its decision on Friday.

Rising inflation is going to keep investors on edge, but they are becoming more comfortable about the Fed’s stance and will continue to build positions in the market, ANZ analyst Daniel Hynes told Reuters.

“The conditions are relatively supportive of further gains in gold... It’s not going to be a sprint but a very gentle, gradual trend higher for 2021 at the moment,” he added.

Meanwhile, investors also digested data released earlier in the day in China that further signaled a slowdown in the country’s economic recovery from COVID-19. Second-quarter GDP grew 7.9% year-on-year while growing 1.3% quarter-on-quarter. The data also said industrial production grew 8.3% year-on-year in June and that the unemployment rate was unchanged at 5%.

In other precious metals, platinum eased 0.3% after hitting its highest level since Jun. 16 during the previous session. Palladium fell 0.5% and silver was steady at $26.23 per ounce.

Gold Up, Just Below Four-Week High, Over Powell Dovish Stance
 

Related Articles

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)
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Jul 15, 2021 2:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stocks must drop in big lumpy chunks for gold to go up. When will that happen? Yeah, I think they will soon. Hang in there
 
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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email