Gold dips, approaches fourth weekly gain after Powell boost

16.07.2021 - Korneychuk Evgeniya
Gold dips, approaches fourth weekly gain after Powell boost

Gold dipped on Friday morning in Asia even as it headed toward a fourth consecutive weekly gain. The safe-haven asset was boosted by Federal Reserve Chairman Jerome Powell’s pronouncement that any inflation will be transitory and that the central bank would continue to support the economy.

Gold futures slipped 0.5% to $1,828.10 by 12:20 AM ET (4:20 AM GMT) but went up 1.2% this week. The dollar, moving inversely to gold, went down on Friday.

Powell gave his statements on the second day of his testimony before the US Congress’ Financial Services Committee on Thursday, where he reaffirmed his pledge of “powerful support” for the US economic recovery from the effect of COVID-19.

However, investors largely expect that the Fed will begin asset tapering by the end of 2022. A number of investors also anticipate a hike in interest rate as early as 2022 but still recognize that the recent surge in COVID-19 cases due to the Delta variant remains the top economic risk.

Investors continue to mull over the second-quarter GDP figure from China, a leading consumer of the yellow metal. Expectations for policymakers to do more to hasten economic recovery continue to rise as higher costs of raw materials and resurgence of COVID-19 cases slow down growth.

Meanwhile, Barrick Gold Corp revealed on Thursday its second-quarter gold production went down 5.4% from the previous quarter.

In related news, silver remained unmoving and palladium crept up 0.1% while platinum slid 0.1%.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?