On Wednesday, May 26, 2021, gold prices surpassed the psychologically important level of $ 1,900 an ounce, supported by the dollar's decline and growing concerns about inflation after US Federal Reserve officials maintained a more accommodative stance on interest rates. </p><div> <p>By 5:30 a.m. GMT, spot gold increased 0.3 percent to 1,905.36 dollars an ounce, its highest level since January 8, 2021.
“The drop in the dollar is providing support, and the rising risk of inflation is overshadowing everything at the moment. It’s a matter of hedge against inflation right now,” said Stephen Innes, managing partner at SBI Asset Management.
“Even with high inflation, they (at the Federal Reserve) will be very, very easing. What really matters for gold is the final real interest rates. The Fed will continue to keep final interest rates at a low level, which is what
It will weaken the dollar and gold will do well. ”The dollar index sat near its lowest level in four and a half months against other major currencies, making gold less expensive for holders of other currencies.
As for other precious metals, palladium rose 1 percent to $ 2796.62 an ounce, silver advanced 0.6 percent to $ 28.14, and platinum jumped 1.2 percent to $ 1,205.38.