Prices for gold and silver accelerated to the highest in more than three months, as the latest drop in US Treasury Yields and rising Covid-19 cases across the Asian continent push demand for safe-haven assets even higher.
“It seems inflation fears are finally translating into higher precious-metals prices, and ETF [exchange-traded fund] investors are starting to swing into net buyers again,” explained Guardian Gold Australia business development manager John Feeney to Bloomberg.
As of Wednesday, spot gold was trading above $1,860 per ounce, after hitting $1,875 per ounce earlier in the week— the highest since the end of January. In the meantime, silver prices reached $28.75 per ounce– also a new high since February, before receding to $27.54 per ounce at the time of writing.
On Monday, Federal Reserve Vice Chairman Richard Clarida said that the US economy still hasn’t reached the benchmark of “substantial further progress” necessary in order for the Fed to pare back its asset purchases. As of current, the Fed has been purchasing $80 billion worth of treasures and $40 billion in asset-backed mortgages each month, while maintaining interest rates near zero.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.