11 MAY 2021
Gold Price Rises as Dollar Continues Lower & Americans Collect Checks at Home
The Gold price posted a 5 day increase of 3.31% this past week, touching a high of $ 1,844/oz. This was largely due to the U.S Dollar Index plunging 2.13% over the past month – heading towards the 2021 yearly open. Subsequently, the gold rally over the past month continues, gold is also becoming less expensive for holders of other currencies.
Currently, the gold price faces immediate resistance at $ 1,851/oz, but it’s currently in an ascending channel, resuming its upward trajectory.
Investors will have a snapshot of the true state of the global economy this week, as inflation data across the world will be released. U.S. inflation data, including the Core Consumer Price Index will be released later this week, with China releasing inflation data later today and in the U.K, Bank of England Governor Andrew Bailey is due to speak on Wednesday.
Citigroup’s inflation-surprise index for emerging markets jumped to its highest since 2008, last month, indicating that investors may be miscalculating the scale of the resurgence.
The U.S. Chamber of Commerce blamed the $300-per-week federal jobless benefit, for encouraging Americans to stay at home. The Chamber said that, “The disappointing jobs report [last week] makes it clear that paying people not to work is dampening what should be a stronger jobs market.” According to the Chamber’s analysis, a $300-per-week benefit results in approximately a quarter of the recipients taking home more in unemployment than they earned working. That’s the problem with printing ‘helicopter’ money…
The yellow metal was last seen trading at $1,837/oz.