After a brief period of volatility in the market, the price of gold has risen in two weeks. The last 48 hours were rather negative for the gold price. The price is expected to return to the middle of the $1,800 mark.
Gold on the Comex in New York rose $ 21.60 to $ 1,753.30 an ounce, or 1.2%, after plunging to its lowest level since March 31 at $ 1,726.50 an ounce.
Gold’s rise came as the dollar fell against major currencies for the first time in five days.
The 10-year Treasury bond also saw a reversal this week, both of which tend to move in the opposite direction to gold.
“Lower yields and a weaker dollar are pushing gold back to $1,750,” said Craig Erlam, an analyst at OANDA Securities in New York.
Gold has been in trouble since Friday, after the July employment report. If the Fed decides to cut the $120 billion in monthly stimulus sooner than expected, this could lead to a rise in interest rates. In the end, it could make the dollar and bond yields volatile in the short term. That could further weigh on gold prices.
Since January, gold has been in a difficult period that began last August when the price rose above $2,000.
With the roll-out of the COVID-19 vaccine in November last year, the gold price buckled significantly for the first time.
After bottoming at $1,675, gold managed to rebound back to $1,905.
Since then, portfolio sell-offs have caused the price to fluctuate between $1,700 and $1,800 for a while before moving back towards the $1,600 mark.
The Spot Market is Open
Fri. 13 Aug-2021