Gold Prices Back Above $1,800

0
Gold & Silver Prices

Morning trading on July 8, 2021, saw gold prices track above $1,800 per ounce after the yellow metal had been hovering between $1,755 and $1,780 for over two weeks. The prevailing inflation concerns these days would lend many to think gold should be faring much better as of late than it has been. However, counteracting factors, including a relatively strong United States dollar, rising employment, and prancing consumer confidence have helped suppress gold, silver, and other bullion during a period that otherwise lends to more robust performance for precious metals.

So, why did gold prices climb nearly $20 per ounce this morning to reach above $1,815 per ounce? For one, the Federal Reserve hinted a drawback on asset purchases for the 10-year Treasury note, a government-backed security that is widely embraced as a safe investment; lower yields suggest that more investors are turning to the 10-year “T note” due to declining confidence in other areas of the market. Meanwhile, increased government spending on the domestic front via stimulus programs and other initiatives is also pointing to possible weaknesses ahead for the U.S. dollar.

How much of this economic uncertainty is tied to long-term issues or are simply prompted by short-term supply-chain shortages languishing from COVID-related lockdowns and layoffs from last year? It’s hard to say, exactly. But what is certainly solidifying is the anxiety among many investors who are increasingly turning to precious metals to diversify their portfolios and help shelter their funds against inflation and other economic turmoil. It should also be noted that silver prices, which are also closely watched by gold investors, have perked up over 30 cents since yesterday and this morning trend around $26.10 per ounce.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Warning: Undefined array key 2 in /var/www/html/coinage-prod/wp-content/plugins/Custom_captcha_for_comment/init.php on line 165

Warning: Undefined variable $operators in /var/www/html/coinage-prod/wp-content/plugins/Custom_captcha_for_comment/init.php on line 182

Warning: Undefined variable $result in /var/www/html/coinage-prod/wp-content/plugins/Custom_captcha_for_comment/init.php on line 187

CAPTCHA Image