COMEX Gold Eases After Hitting Three Week Top

Published on Jul 09, 2021 12:21

Gold corrected in intraday moves yesterday. The COMEX Gold futures hit a fresh three month high near $1820 per ounce on supportive outlook and a generally positive assessment for the commodity in coming months. Some moderation emerged in the metal thereafter. The commodity currently trades marginally up at $1805 per ounce. The World Gold Council (WGC) noted in its mid-year Gold update that interest rates will likely remain key drivers of financial assets and Gold is no exception to it. Yet, the negative impact of higher rates will likely be offset by the longer lasting effects and unintended consequences of expansionary monetary and fiscal policies created to support the global economy. These may include inflation, currency debasement, and a significant shift in asset allocation strategies. Combined with attractive entry levels, this could prompt strategic investors to add gold to portfolios as well as support central bank buying in H2. However, while consumers may also benefit from the economic recovery and the recent price pullback, new COVID variants may limit the uptake in gold jewellery in key markets.