Gold prices rose against the falling dollar, but the gains were capped by higher returns
Written by Gina Lee
Investing.com – rose Monday morning in Asia, up from a seven-month low during the previous session. Meanwhile, the falling dollar gave gold a boost, despite the gains being capped by higher yields.
It was also up 0.26% to $ 1,782 by 11:53 PM ET (4:53 AM GMT). The dollar fell on Monday, while US Treasury yields rose to their highest level in nearly one year.
Real gold demand in India rose over the past week as domestic prices reached their lowest levels since June 2020. Other Asian centers are also expecting an increase in purchases after the Lunar New Year holiday.
Meanwhile, the US Commodity Futures Trading Commission (CFTC) said on Friday that hedge funds and money managers have pulled back from their purchasing positions in COMEX gold, heading to a contract increase in the week ending February 16th.
The $ 1.9 trillion Covid-19 stimulus package proposed by US President Joe Biden also continued to advance, after the House of Representatives on Friday passed the legislation that lawmakers are aiming to pass within the week.
On the central bank front, Fed Chairman Jerome Powell will submit the Fed’s semi-annual monetary policy report to the Senate Banking Committee on Tuesday, while investors will watch for any signs of concerns about rising long-term borrowing costs from Powell.
The Fed warned on Friday of the risks of continued business failure in the US that “remains significant” even as the economy recovers from the COVID-19 crisis.
On the other hand, the price of silver was up 1.3%, and the price of platinum was up 1.7% and jumped 1.6%.