Gold is likely to increase for the third week
Gold prices jumped for the third time in a row on Friday, as a modest decline in the dollar rendered bullion relatively cheap for owners of foreign currencies, while a fall in U.S. Treasury yields bolstered the secure commodity.
As of 0108 GMT, spot gold was unchanged at Rs1.5 lakh per 28g. So far this week, prices have climbed by 0.8 per cent. Gold futures in the United States were unchanged at Rs 1.34 lakh per 28g.
Against its peers, the dollar index fell from a three-month high. The opportunity cost of keeping non-interest bearing gold has decreased as benchmark 10-year Treasury yields have remained near four-month lows.
According to figures released on Thursday, the percentage of Americans submitting new jobless claims increased last week, indicating that the jobs market’s recovery from the COVID-19 epidemic is still rough. The S& P 500 and the Nasdaq both fell on Thursday, with the S& P 500 and the Nasdaq both retreating from historic ending highs in a broad sell-off fueled by concerns about the speed of the US economic recovery.
On Thursday, the European Central Bank defined a core goal and committed to playing a key role in the battle against climate change, signalling the start of reform of Europe’s most dominant finance company.
While the Fed is expected to debate reducing asset purchases at its meeting in Jackson Hole in August, three asset management experts predict that global markets will not have a dramatic tapering crisis.
Several traders see gold as a protection against the possibility of rising inflation as a result of the spending plan. Silver prices dipped 0.1 per cent to Rs 1800 per 28g, palladium prices dropped 0.4 per cent to Rs 2.8 lakh, while platinum prices rose 0.1 per cent to Rs 1.2 lakhs.