Gold market update
Gold prices fell on Monday, weighed down by a stronger dollar and easing concerns about inflation, while investors awaited cues from the US Federal Reserve’s policy meeting due later this week.
Spot gold was down 1.1% to $1,856.30 per ounce by 09:08 GMT. US gold futures fell 1.1% to $1,858.20.
Along with a stronger dollar, profit-taking is weighing on the metal, with the market seeing a bit of book squaring ahead of the Fed’s meeting on the 15th-16th June.
Last week, data showed a sharp rise in consumer prices in the US in May. Fed officials, however, have repeatedly said the inflation will be transitory.
Gold price this month in AUD/OZRush viewpoints
This week we take a look at the debate over whether the sharp uptick in inflation is a temporary or a longer-term phenomenon:
Read the article: On inflationary trends and tailwinds
Gold in the news
Here are a few articles trending on the subject of gold:
- Gold buying by central banks has been a powerful force in previous gold bull markets. Now we’re seeing signs that central bank buying is ramping up: https://finance.yahoo.com/news/gold-boe-commands-high-premium-194455336.html
- The Central Bank of Russia paused their gold buying programme when its holdings of gold equalled its holding of US dollars. Russia, however, has begun a new gold buying programme through their sovereign wealth fund: https://tsarizm.com/news/eastern-europe/2021/05/30/russia-moves-to-invest-assets-of-sovereign-wealth-fund-in-gold/
- Investors are realising (after a 50% plunge in less than a month) that Bitcoin is not a reliable store of value. So according to J.P. Morgan, institutional investors are switching out of Bitcoin and into gold: https://www.businessinsider.com.au/jpmorgan-bitcoin-gold-investing-crypto-cryptocurrency-2021-5?r=US&IR=T
New Rush Gold offers
Our top-up offer is back this month!
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This offer ends on the 30th of June 2021. Learn more.