{"id":18289,"date":"2020-08-29T11:54:47","date_gmt":"2020-08-29T11:54:47","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=18289"},"modified":"2020-08-29T11:54:47","modified_gmt":"2020-08-29T11:54:47","slug":"gold-surges-over-2-on-waning-dollar-federal-policy-shift-business-news","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=18289","title":{"rendered":"Gold surges over 2% on waning dollar, Federal policy shift – business news"},"content":{"rendered":"

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Gold rebounded over 2% on Friday, a day after a steep sell-off, as the US dollar weakened and the US Federal Reserve signaled a prolonged low interest rate strategy.<\/p>\n

Spot gold rose 2.1% to $1,968.59 per ounce by 12:41 pm EDT (1641 GMT), taking gains this week to about 1.5%. Prices fell as much as 2.2% on Thursday after US Treasury yields gained following Fed Chair Jerome Powell\u2019s speech. <\/p>\n

US gold futures rose 2.5% to $1,980.90.<\/p>\n

Also read: <\/b>Gold prices in India saw sluggish week, rallied on Thursday<\/a><\/p>\n

\u201cThe sizeable sell-off in the greenback has propped up gold,\u201d said David Madden, market analyst at CMC Markets UK.<\/p>\n

\u201cThe Fed said it can allow inflation to run above its 2% target for some time seems like they are going to keep their monetary policy extremely loose, which should help gold.\u201d<\/p>\n

The dollar <.DXY> fell to an more than one-week low, making gold cheaper for holders of other currencies, and was on track to post its biggest weekly percentage fall since end-July.<\/p>\n

Powell said on Thursday the central bank would adopt an average inflation target, meaning rates are likely to stay low even if inflation rises a bit in future.<\/p>\n

On the other hand, global central banks and governments have pumped massive stimulus into the market to prop up their coronavirus damaged economies, helping gold gain over 28% this year.<\/p>\n

\u201cThe shift in Fed policy will mostly likely reignite \u2018the inflation trade,\u2019 which has historically been bullish for hard assets (like gold),\u201d Kitco Metals senior analyst Jim Wyckoff said in a note.<\/p>\n

Low interest rates tend to support gold, which is also a hedge against inflation and currency depreciation.<\/p>\n

Silver rose 1.8% to $27.53 per ounce, on track for a second consecutive weekly rise.<\/p>\n

Platinum gained 0.1% to $929.49, while palladium rose 2.1% to $2,206.54.<\/p>\n

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Gold rebounded over 2% on Friday, a day after a steep sell-off, as the US dollar weakened and the US Federal Reserve signaled a prolonged low interest rate strategy. Spot gold rose 2.1% to $1,968.59 per ounce by 12:41 pm EDT (1641 GMT), taking gains this week to about 1.5%. […]<\/p>\n","protected":false},"author":1,"featured_media":18290,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-18289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/tokyo-bars-materials-displayed-mitsubishi-corporation-headquarters_eca1fab0-e9d1-11ea-98f7-bd84aa0e920b.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18289"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/18289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/18290"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}