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Gold surges above $1,890, highest since January

ETF, stocks, shares, investment, equity,Gold loses some shine on hopes for COVID-19 vaccines

Gold has been on a bullish trend since March 2021. It has currently broken the $1,890 trading level, a level the commodity has not traded since January 2021. It has reached a new peak of $1,895.89 today, which represents a 12.85% increase from March’s bottom of $1,680. Gold is currently trading $1,891.48 at the time of writing this report.

The reason for the upside move came from the negative US data. New Home Sales disappointed with only 863,000 annualized in April while the Conference Board’s Consumer Confidence Consumer Sentiment measure for May missed estimates by 117.2 points.

Federal Reserve officials have emphasized their message that the US economy has a long way to go and that inflation is transitory. That means the Fed is set to continue injecting markets with $120 billion of newly created cash every month and hold back on raising interest rates.

US Treasury yields are on the back foot, as returns on 10-year Treasuries dropped to 1.57%. The US economy is recovering rapidly, but also facing shortages and skill mismatches among workers. That is slowing the recovery and pushing the Fed to more expansionary monetary policies.

Source: Nairametrcis

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