20 May 2021
Gold Hits Another High
Gold has increased 11% from its March 2021 low of $1,684/oz – with the price touching a more than three-month high of $1,890/oz on Wednesday,last seen in January this year. The U.S dollar remains in a downtrend, losing 0,79% over the past week.
Gold prices were supported by the release of the U.K inflation data (which doubled to 1.4% in April), a drop of almost 30% in the bitcoin price on Wednesday, and a down day in stocks on fears of a resurgence in Covid cases in parts of the world.
U.S Fed Vice Chair Richard Clarida said during a webinar that the weaker-than-expected April payroll report shows “we have not made substantial further progress” on the central bank’s goals for employment and inflation. These thresholds will be used to begin sclaing back the bank’s money printing and bond purchase programs.
More than a third of last month’s personal disposable income in the U.S was given by the U.S government. Gavin Newsom, governor of California, announced this week that Californians making less than $75,000 would receive stimulus checks of $600, families with at least one child would receive an extra $500. So there’s still no end in sight for the now normalised helicopter money.
Markets will be looking through the minutes of the latest Fed FOMC meeting – to be released this week – for any signs of mounting inflation pressures, talks of scaling back, and other forward guidance.
The yellow metal was last seen trading at $1,877/oz.