Latest News

Gold shows steady growth today

Relevance up to 03:00 2021-10-24 UTC–4

On Monday, gold continued the downward trend taken at the end of last week. The yellow asset was under pressure from several negative factors at once for two consecutive sessions.

This precious metal declined by 0.2%, or $ 2.60, reporting to $ 1,765.70 yesterday, while it plummeted by 1.6% or more than $ 25 in the previous trading.

The price of silver also dropped to $ 23,264 per ounce. Quotes fell by 0.4%, or 9 cents, compared to last Friday, when they declined by 0.6%.

At the beginning of this week, precious metals received support from global stock markets, which were mostly dominated by negative sentiment. However, even this factor could not keep gold and silver from falling.

The precious metals market faced a number of problems yesterday. In particular, Bitcoin’s continued growth has become an obstacle for yellow and gray assets.

The value of the digital coin has risen above $ 62 thousand for the first time since April and has firmly settled at this level. The cryptocurrency received support against the background of the launch of the first bitcoin ETF in the United States. Today, its shares will be available to investors on the New York Stock Exchange.

In addition, the yellow asset reacted with a decline to the publication of China’s GDP data, which is one of the world’s key buyers of gold.

Recent data indicated a slowdown in economic growth in China. In the third quarter, China’s GDP increased by only 4.9% compared to the same period in 2020, while in the second quarter, the indicator rose by 7.9%.

Gold received another blow on Monday from the yield of American 10-year bonds. The prospect that the US Federal Reserve may announce the beginning of a reduction in asset purchases as early as next month, accelerated the indicator to 1.60% against Friday’s value of 1.56%.

At the same time, gold’s growth was limited by the stable US dollar. Yesterday, the greenback index, which declined last week after 5 consecutive weeks of growth, traded almost unchanged.

However, the situation changed on Tuesday morning: the US dollar sank. The greenback index dropped by 0.28% and was 93.69 points against its main competitors.

Analysts attribute the fall of the US currency to the fact that the market continues to assess the prospects for the further course of the Fed. Most experts expect that the discount rate will increase from the current value of 0-0.25% per annum by the end of summer 2022.

Against the background of a weakening US dollar, it seems that gold is winning today. The safe-haven asset’s price increased by 0.5%, or $ 9.05, reporting to $ 1,774.75.

Meanwhile, silver has also won its way up. The asset gained 1.07% this morning and traded at $ 23.512 per ounce.

It is worth noting that both precious metals ended the past week in the positive zone. Gold surged by 0.6%, which was the best result since late August and early September. At the same time, silver was also up by 2.8%.

Benefit from analysts’ recommendations right now

Top up trading account

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published.

More in:Latest News