Cryptocurrency

Gold records high sell-offs, loses $50 an ounce

Sponsored Links

In the aftermath of the rising dollar, gold prices fell over 2.5% since yesterday as multiple markets were affected.

Gold futures were fixed at $1804 an ounce at the time of writing this report, having lost about $50 since yesterday.

Due to the re-appointment of the US Fed Chief, Jerome Powell, the dollar also increased in value and the yields on U.S. debt instruments increased sharply.

READ ALSO:   BOP evaluate: Nigerians spend $3.1 billion on overseas travels in 6 months

Higher yields and dollar strength combined to drive gold lower. A report from the White House stated that President Joe Biden is “fully confident that Chair Powell and Dr. Brainard will demonstrate strong leadership that America needs.”

The president will also be given the chance to reshape the Federal Reserve since three vacancies on the board of governors need to be filled. In early December, it is likely that he will name these members.

READ ALSO:   America leads, accounts America leads, accounts for over 35% of the overall Bitcoin mining hash charge

Many of today’s market moves, including the sale of gold and sharp rises in 10-year and 30-year Treasury notes, are linked to the comments made by multiple officials.

US interest rates could be raised by the Federal Reserve before the end of 2022, according to the central bank. In addition to the rapid economic recovery in the United States, these Fed members are concerned about the level of inflation.

READ ALSO:   Bear Market in Cryptocurrency world as Crypto investors lose $340 million as Bitcoin drops in 8 straight days

According to President James Bullard of the St. Louis Federal Reserve, the central bank might have to accelerate its tapering process which began this month so that interest rates can be raised sooner than anticipated in an effort to temper rising inflationary pressures which further added selling pressure on the yellow metal momentarily

Sponsored Links

Leave a Reply

Back to top button