Gold price extends gain on virus concerns, weak economic data

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Gold price extends gain on virus concerns, weak economic data

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Here's more on how gold is doing. ;)

Gold price extends gain on virus concerns, weak economic data
MINING.COM Staff Writer | August 16, 2021

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Some remain bullish on gold. Stock image.

"Gold is heading for its fourth straight gain as investors turned to the safe haven asset amid concerns over the delta coronavirus variant and weaker economic data.

Spot gold rose 0.4% to $1,786.45 per ounce by 11 a.m. EDT, its highest in over a week. US gold futures also advanced 0.7% to trade at $1,790.70 per ounce in New York.

[Click here for an interactive chart of gold prices]
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A report published by the Federal Reserve Bank of New York on Monday showed the state’s manufacturing activity moderated in August after expanding at an unprecedented pace a month earlier. Meanwhile, a measure of selling prices advanced to a fresh record, suggesting that inflationary pressures remain elevated.

Chinese retail sales and industrial output data also showed activity slowed due to fresh lockdowns to contain the covid-19 outbreak in the world’s biggest consumer.

The data underscored broader concerns over threats to the global recovery from rising prices and virus cases, boosting bullion as a haven asset. Treasury yields and inflation-adjusted real yields also fell, increasing the metal’s appeal.

“The drop in yields and risk appetite is helping gold,” Bart Melek, head of commodity strategy at TD Securities, told Bloomberg. The precious metal’s rebound toward $1,780 also triggered some investors to buy back their bearish positions, further lifting prices, according to Melek.

This week, investors will parse through a speech by Federal Reserve Chair Jerome Powell, as well as minutes of the Fed’s latest meeting, for more clues about the likely timeline for tapering.

“The message must be: if you have a tactical position, get out; if you have a strategic position, ... "

https://www.mining.com/gold-price-exten ... nomic-data
PinkDiamond
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