After posting its biggest gain in more than a month, the price of a Bloomberg gold increased as investors weighed renewed concerns over economic growth amid tighter monetary policy.
The US dollar retreats from a record July 14 and the surge in Treasuries Thursday has pushed the 10 year yield below 3%, as Bullion is heading for its first weekly advance in six weeks. There are growing fears of a recession as jobless claims at an eight-month high and a slump in a regional factory outlook are seen as evidence of a slump in one regional factory outlook. There is a contraction according to one of the leading economic indicators.
We expect this initial flight to the US dollar to start rotating back to gold as investors search for a reliable and reliable hedge against inflation. Investors will be watching the Federal Reserve's meeting on July 26 - 27 for clues on its monetary policy path. On Thursday, the European Central Bank raised its key interest rate by 50 basis points, its first increase in 11 years, as it confronts rising inflation. After he was positive for Covid and showing mild symptoms, traders were watching President Joe Biden's condition.
Spot gold was little changed at $1,717. 86 an ounce was received at 9: 08 a.m. in Singapore. After dropping to the lowest intraday level since March 2021, prices went up 1.3% Thursday. The Bloomberg Dollar Spot Index was steady after falling 0.2% in the previous session. There was little change to silver, palladium and platinum.