Gold Price Moderately Stable Despite Yellen’s Co
Post# of 216
(Total Views: 580)
Posted On: 06/16/2021 5:02:13 PM
Gold Price Moderately Stable Despite Yellen’s Comments
Last week, the U.S.Treasury Secretary Janet Yellen commented on the expectations for fiscal spending and inflation, which would push treasury yields even higher. In the news conference, Yellen urged other countries to continue spending in order to support their economies even as the coronavirus pandemic diminished, noting that U.S. inflation in 2021 would be transitory but elevated.
Spot gold only increased moderately by 0.1%, going up to nearly $1,893 while U.S. gold futures increased to $1896, a 0.2% rise.
However, bullion was on the decline after Yellen stated that President Joe Biden should move forward with the spending plans that had been introduced last week, even if they triggered inflation that persisted into 2022. The $6 trillion budget plans, which were introduced by Biden’s administration, would be used to invest in healthcare, education and infrastructure, among many other sectors, as well as increase federal spending to the highest levels sustained since the Second World War
Yellen noted that a moderately higher interest rate environment would be beneficial, which helped improve treasury rates and made non-interest-bearing gold much less attractive.
Gold has been going, reaching about $1,900 per ounce in the middle of a debate on price pressures and speculations on whether the Federal Reserve will begin talks on the decrease of its huge bond-buying program. Last week, the price of gold increased as a report released by the Labor Department demonstrated that in May job gains didn’t meet the economists’ evaluations, which in turn decreased expectations for early monetary tightening.
Traders are now paying attention to this week’s consumer price index report for the United States, which will afford them a guide on whether the central bank will curb inflation. Bullion is considered a hedge against inflation, which could come after stimulus measures.
In an interview with Reuters, RJO Futures’ senior market strategist Bob Haberkorn, stated that despite gold being bullish, Yellen’s remarks were helping keep the prices under control. Haberkorn added that most people were awaiting the Federal Reserve’s plan to ease the markets as well as interest rates, noting that if the Feds remained quiet over the next two or so weeks, the price could shift, while a failure to increase beyond $1,900 could cause a decrease in prices. However, this move will depend on the Federal Reserve’s stance. The dollar index inching down and buoying gold is also enhancing the appeal for investors holding other currencies.
The stability of the price of gold could be beneficial to mining companies such as Asia Broadband Inc. (OTC: AABB) as excessive volatility can hamper long-term planning.
NOTE TO INVESTORS: The latest news and updates relating to Asia Broadband Inc. (OTC: AABB) are available in the company’s newsroom at https://ibn.fm/AABB
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Last week, the U.S.Treasury Secretary Janet Yellen commented on the expectations for fiscal spending and inflation, which would push treasury yields even higher. In the news conference, Yellen urged other countries to continue spending in order to support their economies even as the coronavirus pandemic diminished, noting that U.S. inflation in 2021 would be transitory but elevated.
Spot gold only increased moderately by 0.1%, going up to nearly $1,893 while U.S. gold futures increased to $1896, a 0.2% rise.
However, bullion was on the decline after Yellen stated that President Joe Biden should move forward with the spending plans that had been introduced last week, even if they triggered inflation that persisted into 2022. The $6 trillion budget plans, which were introduced by Biden’s administration, would be used to invest in healthcare, education and infrastructure, among many other sectors, as well as increase federal spending to the highest levels sustained since the Second World War
Yellen noted that a moderately higher interest rate environment would be beneficial, which helped improve treasury rates and made non-interest-bearing gold much less attractive.
Gold has been going, reaching about $1,900 per ounce in the middle of a debate on price pressures and speculations on whether the Federal Reserve will begin talks on the decrease of its huge bond-buying program. Last week, the price of gold increased as a report released by the Labor Department demonstrated that in May job gains didn’t meet the economists’ evaluations, which in turn decreased expectations for early monetary tightening.
Traders are now paying attention to this week’s consumer price index report for the United States, which will afford them a guide on whether the central bank will curb inflation. Bullion is considered a hedge against inflation, which could come after stimulus measures.
In an interview with Reuters, RJO Futures’ senior market strategist Bob Haberkorn, stated that despite gold being bullish, Yellen’s remarks were helping keep the prices under control. Haberkorn added that most people were awaiting the Federal Reserve’s plan to ease the markets as well as interest rates, noting that if the Feds remained quiet over the next two or so weeks, the price could shift, while a failure to increase beyond $1,900 could cause a decrease in prices. However, this move will depend on the Federal Reserve’s stance. The dollar index inching down and buoying gold is also enhancing the appeal for investors holding other currencies.
The stability of the price of gold could be beneficial to mining companies such as Asia Broadband Inc. (OTC: AABB) as excessive volatility can hamper long-term planning.
NOTE TO INVESTORS: The latest news and updates relating to Asia Broadband Inc. (OTC: AABB) are available in the company’s newsroom at https://ibn.fm/AABB
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
(0)
(0)Asia Broadband Inc (AABB) Stock Research Links
Scroll down for more posts ▼