Gold surpasses $1900 an ounce thanks to US monetary policy

Last Updated on May 29, 2021

Gold Price – 28th May 2021

Gold prices rose during the trading session today, in the European market, in the second consecutive daily gain, to trade again above the important psychological barrier of 1900 dollars an ounce, thus registering their highest levels in four months, this rise came based on the statements of some Federal Reserve officials, which The prospects for tightening US monetary policy have diminished earlier in 2023.

Gold prices continue rising

At 09:25 GMT, the spot price of gold was up by 0.6% to trade around 1910.01 dollars an ounce, compared to the opening level at 1899.09 dollars, and early in the session, the lowest price was recorded at 1896.92 dollars an ounce.

XAUUSD chart -28th May 2021

After yesterday’s trading, the precious metal “gold” managed to achieve gains of 1%, as prices received more support recently thanks to the widespread decline in the US currency levels against many world currencies.

Regarding the trading of the US dollar index, the index rose during today’s session by more than 0.1% in the first daily gain in the last three sessions, to consolidate above its lowest level in four months at 89.53 points recorded earlier in yesterday’s trading, reflecting the halt of the widespread selling of the US currency against most major and minor currencies.

The Federal Open Market Committee of the Central Bank, chaired by Chairman of the Board, Jerome Powell, insists that the rise in inflation in the country will be “transient” and will vanish as the economy fully recovers from the epidemic, and the FOMC does not see the immediate need to raise interest rates. The continuation of the super-easy monetary policy is justified.

Statements by officials

“I haven’t seen anything yet to convince me to change my full support for the current monetary policy,” said Charles Evans, head of the Chicago Federal Reserve.

“At present, monetary policy is in very good shape, and we need to be patient,” said San Francisco Federal Reserve chief Mary Daly.

For his part, Vice Chairman of the Council “Richard Clarida” said that the US central bank can curb the spread of inflation if it occurs without taking the economic recovery off the right track.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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