Gold Steady Near Four-Month High Amid Fed Inflation Comments
By Administrator_ India
Gold steadied near the highest level in more than four months as investors weighed comments by Federal Reserve officials who sought to soothe concerns about inflation.
Governor Lael Brainard, Atlanta Fed President Raphael Bostic, and St. Louis’s James Bullard said they would not be surprised to see bottlenecks and supply shortages push prices up in coming months as the pandemic recedes and pent-up demand was unleashed, but much of those price gains should prove temporary.
Gold is close to erasing this year’s decline as investors turn more bullish on the precious metal, with holdings in bullion-backed exchange-traded funds on an uptrend. While market-based measures of inflation expectations have dipped, traders remain cautious about price pressures as well as flareups in Covid-19 cases in some parts of the world.
Spot gold fell 0.2% to $1,876.73 an ounce by 8:25 a.m. in Singapore. Prices climbed to $1,890.13 last week, the highest since Jan. 8. Bullion’s 14-day relative strength index has been above 70 for the past week, a signal to some traders that it’s overbought and due for a pullback.
Silver and platinum dropped, while palladium steadied. The Bloomberg Dollar Spot Index was flat after declining 0.2% on Monday.