COMEX Gold Hits Four And Half Month High Near $1900 Per Ounce

Published on May 20, 2021 14:20

COMEX Gold futures slumped near $1850 per ounce yesterday amid a sustained spell of weakness ahead of the release of the latest US Fed minutes. The metal edged up though as the leading global cryptocurrency Bitcoin fell like a rock and shed nearly 30% to test near three month low. This intense volatility in the counter supported Gold and the yellow metal moved up near four and half month high above $1890 per ounce before easing. Meanwhile, the US Federal Reserve officials noted that the pick-up in inflation is transitory, according to the minutes of the Fed`s April 27-28 meeting, released Wednesday. Participants also noted that the expected surge in demand as the economy reopens further, along with some transitory supply chain bottlenecks, would contribute to personal consumption expenditure based price inflation temporarily running somewhat above 2%. After the transitory effects of these factors fade, participants generally expected measured inflation to ease, the minutes showed.