Gold Sees Mixed Movement Last Week

Published on Sep 14, 2020 11:24

COMEX Gold futures saw mixed moves last week. The metal rallied initially on dovish comments from the US Fed. US Federal Reserve Chairman Jerome Powell said the pace of jobs growth in US is rising faster than many people expected, but it may take years before the economy has fully recovered. Powell noted that US economy likely will require more government spending and low interest rates for years. However, the metal eased from one and half week high. Worries over retail demand in India remain in place with daily fresh COVID-19 cases count hitting near 95000. COMEX Gold futures closed just under $1950 per ounce mark. .

Not much of buying has been visible in Gold on rallies over recent weeks as traders have become cautious after the metal failed to hold above $2000 per ounce mark at the start of this month. According to a latest update from the World Gold Council or WGC, Gold-backed ETFs and similar products (gold ETFs) recorded their ninth consecutive month of inflows in August, albeit at their slowest pace for 2020. Collectively, gold ETFs added 39 tonnes (t) during the month, equivalent to US$2.1bn or 0.9% of assets under management (AUM) as the price of gold reached a record high of US$2,067 early in August.