The dollar’s weakness was partially responsible for today’s gains, but most of the gains came from market participants offering the precious yellow metal higher as active buyers. The most active Comex contract based on silver in May 2021 rose $ 0.28 and is currently fixed at $ 25,525.
For both gold futures and spot pricing, it was the weakness of the dollar that partially contributed to the rise in gold and silver prices. The dollar index lost 40 points, or -0.40%, and is now fixed at 92.10. According to the KGX (Kitco Gold Index), spot gold is currently fixed at $ 1,755.80, representing a net profit of $ 18.20 per day. On closer inspection, market participants are buying the precious metal up $ 11.10. At the same time, due to the weakness of the dollar, the cost of a troy ounce of gold increased by $ 7.10.
Bitcoin futures, which are traded on the Chicago Mercantile, are up $ 1,735 today, remaining extremely strong with a single coin valued at $ 58,045.
Much of today’s gains in precious metals and US stocks are directly related to the minutes of the FOMC meeting last month, which were released yesterday. In addition, the Federal Reserve is not alone in its mandate and continues to provide extremely flexible interest rates compared to their Fed’s funds rate, which is currently between 0% and%. In addition, they continue to add an additional $ 120 billion a month to their balance sheets through purchases of United States bonds and mortgage-backed securities.
The Federal Reserve is not alone in exercising its monetary mandate. On Tuesday, the IMF backed the Fed’s decision to be patient and not rock the boat by raising interest rates too quickly. The International Monetary Fund has made it clear that they also intend to pursue extremely flexible monetary policy. In their most recent Global Financial Stability Report, they argued convincingly that there is still a need for the current “blue” behavior of central banks around the world. Both organizations are well aware that we live in a global economic world in which positive developments in any major country have a spillover effect on other countries, and that raising rates too quickly can easily stifle the economic recovery seen in the United States and to a lesser extent. … degree in Europe.
Chairman Jerome Powell attended a virtual spring meeting today sponsored by the International Monetary Fund and the World Bank. He acknowledged that there are a number of factors that together contribute to a better forecast of the US economy. The statement that these factors played an important role in the fact that the country “embarked on a path that will allow the economy to fully resume in the near future.” However, he also spoke of the caveat, saying that many Americans who are out of work will struggle to find new jobs because some industries are likely to be smaller than they were before the pandemic, as well as a statement that says : “It’s important to remember that we are not going back to the same economy. It will be a different economy. “
While the IMF and the Federal Reserve remain extremely flexible as such, they can have a profound and negative impact on both the euro and the US dollar. This is likely to lead to a depreciation of both of these currencies over time, which in turn has created new fears about rising inflation.
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