Gold rallied Monday morning in Asia, after posting losses in the previous session. The Chairman of the US Federal Reserve, Jerome Powell, thinks that inflation could ease in 2022 and that the central bank is on track to start cutting assets soon.
Gold futures Gold
1,799.05+2.75 (+0.15%)
14:15:33 - Real Time CFD Data
1,799.05
10:00
12:00
14:00
1,800.00
1,790.00
1,795.00
Technical Summary
5 minutes: Buy Strong
Hourly:Strong Buy
Daily: Strong Buy
Monthly:Neutral
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rose 0.16% to $1,799.01 by 11:59 PM ET (3:59 AM GMT). The dollar, which usually moves inversely with gold, fell on Monday. The greenback, however, held out, avoiding its biggest weekly drop in more than a month, putting further pressure on the yellow metal.
Gold rallied to its highest level since early September 2021 on Friday, before giving up some gains following Powell's comments on a gradual reduction in asset purchases. Inflation could persist for longer and the Fed could start easing assets early but remain patient with rate hikes as employment remains low, he said at a panel discussion on Friday.
However, US Treasury Secretary Janet Yellen said on Sunday that the US has not lost control of inflation and that inflation could return to normal in the second half of 2022.
Investors are also awaiting policy decisions from the Bank of Japan and the European Central Bank (ECB), both announced on Thursday. Although no policy change is expected, the market is anticipating inflation to be higher than the ECB's direction.
Speculators reduced their long positions in gold in the week to October 19, according to data from the US Commodity Futures Trading Commission released on Friday.
Among other precious metals, silver was unchanged at $24.31 an ounce. Platinum was up 0.1% and palladium was up 0.7%.
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