Gold Sees Cautious Moves After Hitting Two Week High

Published on Mar 22, 2021 11:08

Gold saw cautious moves after hitting two week high above $1750 per ounce in last week. The metal rose following a tepid undertone in the US Fed`s monetary policy statement but soaring yields on US treasuries capped upside for the metal. The US 10 year bond yields surged to a near 14 month high above 1.70%. However, volatile equities capped losses for Gold. The metal currently ended just above $1740 per ounce. The US Federal Reserve is committed to using its full range of tools to support the US economy in this challenging time, thereby promoting its maximum employment and price stability goals, the Fed stated. The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Following a moderation in the pace of the recovery, indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak. Inflation continues to run below 2%, the Fed reported. The Fed expects to maintain an accommodative stance of monetary policy until these policy outcomes are achieved.