Check out what’s clicking on FoxBusiness.com.
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.
BITCOIN NO MATCH FOR GOLD: BARRICK GOLD CEO
“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.
Gold firmed on Monday and was on course for its biggest monthly jump since July 2020, as the U.S. dollar headed for a second month of decline while growing inflationary pressures also lifted bullion’s appeal.
Data on Friday showed U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target and posting its largest annual gain since 1992.
Gold, often used as a hedge against inflation, has benefited from recent data showing a rise in prices in the United States and the UK.
Investors’ focus this week will be on U.S. payrolls data due on Friday with median forecasts at 650,000.
“On the technical front, a trade above the $1,915.60 would, however, signal a resumption on the $1,950 target… and there is strong support at the $1,875 and $1,850 levels,” Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.
CLICK HERE TO READ MORE ON FOX BUSINESS
Palladium rose 0.4% to $2,837.48 per ounce, but it was set for its first monthly decline in four. Platinum climbed 0.6% to $1,184.69.
Silver jumped 0.5% to $28.03 and was heading for its best monthly gain since December.
