The safe-haven gold futures’ prices gained over 1 per cent after the US Fed Chair Jerome Powell had told in a congressional hearing earlier on Wednesday that the US Central Bank would continue to maintain an accommodative monetary policy despite a scary pick-up in the inflation indicators, restoring a safe-haven appeal for the safe-haven yellow metal while unnerving the American currency.
Aside from that, as of Thursday’s morning European trading, the precious metal extended yesterday’s gain by 0.20 per cent and was last trading at $1,830.56 an ounce. In point of fact, the latest gain in gold futures’ prices was almost entirely prodded by a remark from the US Fed Chair Jerome Powell who said in a Congressional hearing that the beleaguered US labour market had been ‘still a ways off’ from the progress what the Fed wanted to see before tapering off supports for the economy and a fearsome feathering in inflation indicators would ease in the coming months, encouraging investors to lean on the safe-haven asset.
Nonetheless, several Wall Street analysts were still expecting a swift shift in US Fed policy as early as by August this year as US Consumer Prices Index had accelerated by the most in thirteen years last month with US PPI (producer price index) rising to the highest level since June 2010.
Gold gains, restores safe-haven appeal after Fed Chair downplays inflation fear
Citing statistics, on Tuesday’s commodity market closure, spot gold gained 1 per cent to $1,824.75 an ounce, while US gold futures surged 0.8 per cent to $1,825 an ounce.
Among other precious metals, palladium added 0.2 per cent to $2,833.50 per ounce and silver climbed 0.8 per cent $26.18 an ounce, while platinum contracts gained 2.3 per cent to $1,130.01 an ounce.
Meanwhile, referring to an intransigent US Fed which has been spurring up the bullion’s safe-haven allure, a senior market analyst at OANDA, Edward Moya said, “It (Powell’s comments) really cements the belief that despite this scary inflation data, the Fed still remains on course to be fairly accommodative”.