Gold Steady at $1,800 as Biden Wants his $2 Trillion and Europe Sees Inflation Around for Longer

Gold prices traded relatively flat this week and have remained around the $1,800 mark – this after touching a near 3-month high on Friday of $1,812/oz. Gold has remained firm but is still seeking momentum from a shock either to the up or downside.


Whether the safe haven asset can rally further will greatly be determined by interest rates coming out of America, also any unexpected surprises in economic data from the world’s largest economy. Consequently, with the U.S 10 year Treasury yield continuing to decline – the proxy for risk free investing is trading at 1.568% at time of publication – gold’s allure remains strong.


Other than digesting a host of company earnings reports, investors reacted to news that the U.S. economy expanded at an annual rate of 2% in the three months through September – lower than the 2.6% median estimate in a Bloomberg survey, as consumer spending slowed.


American markets are awaiting a slew of economic data releases today and tomorrow, while President Biden attempts to pressure lawmakers into driving through his near $2 Trillion spending plan, before heading off to a climate summit in Europe.


On the European side of the pond, European bonds fell after European Central Bank President Christine Lagarde said higher inflation might be around for longer than expected, though the monetary authority expects prices to start moderating next year.


So for now, it seems all quiet on the ‘golden’ front – the yellow metal was last seen trading at $1,802/oz

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