Experts say gold prices are headed for their best monthly jump since July 2020, adding that a weaker dollar and inflation worries are among what’s helping the boost. In other news, it will be a busy week for investors as they get a wave of economic data including ADP employment, non-farm payrolls, the Beige Book, and another batch of key earnings. Many eyes will fall on the 2021 Bitcoin conference, which is set to take the spotlight later this week, due to the cryptocurrency’s recent price crash.
Reuters via Fox Business/Brijesh Patel
Gold eyes best month since July 2020 on softer dollar, inflation woes
Gold prices rose on Monday and were headed for their best monthly jump since July 2020, boosted by a weaker U.S. dollar and lower bond yields, while growing inflationary pressure also lifted demand for the safe-haven metal as a hedge.
Spot gold was up 0.2 at $1,906.91 per ounce by 0515 GMT, while U.S. gold futures gained 0.3% to $1,913.10. Bullion has risen nearly 8% so far this month.
“Gold is pretty much drawing its strength from inflation fears and some inclination of the yields,” said Stephen Innes, managing partner at SPI Asset Management.
“The dollar is staying weaker, that’s fairly supportive. Gold bulls now have their eyes set on $2,000 and most are thinking it’s going to go quite higher.”
The dollar index eased 0.1% against its rivals, while the U.S. 10-year Treasury yield fell to 1.593% on Friday, reducing the opportunity cost of holding non-interest-bearing gold.
Continue reading, here.
Yahoo! Finance/Sam Ro
Inflation concerns are nibbling at sentiment
Consumer confidence is colliding with rising prices.
On Friday, we learned the personal consumption expenditure (PCE) price index was up 3.6% year-over-year in April. The core PCE price index, which excludes food and energy, was up 3.1%, the biggest jump in this index since 1992.
Similar to how they reacted to the hot April consumer price index (CPI) report, economists were quick to note this increase was largely due to temporary anomalies tied to the pandemic. “We continue to move through the near-term surge in inflation as COVID-19 distortions unwind and services spending and inflation, in particular, continue to play catch-up from depressed levels,” Morgan Stanley’s Ellen Zentner said.
However, assertions that the current bout of price volatility is a transitory phenomenon haven’t placated consumer concerns that prices may be materially higher down the road.
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Fox Business/Lucas Manfredi
Bitcoin, June jobs, Zoom earnings and Powell remarks top week ahead
Financial markets were closed on Monday, in observance of the Memorial Day holiday, but the busy week will ramp up as investors get a wave of economic data including ADP employment, non-farm payrolls, and the Beige Book, as well as another batch of key earnings.
One of the biggest cryptocurrency events of the year, the 2021 Bitcoin conference, will also take the spotlight later this week.
This as the Dow Jones Industrial Average and S&P 500 sit near record highs. The Nasdaq Composite slightly below its high.
FOX Business takes a look at the upcoming events that are likely to move financial markets in the coming days. You can see them, here.