Gold Slippery After Hitting One Week High

Published on Feb 15, 2021 13:28

Gold continued to stay slippery after hitting a one week high and saw a substantial correction amid sustained rise in global equities. US stocks hit another record high and the Dollar index stabilized around one week low, capping major buying in the yellow metal. The real onslaught on the commodity was triggered by another spurt in Bitcoin and further selling pressure could be in the offiing as the leading digital currency rallied to another all-time high of $50000 mark over weekend. MCX Gold futures failed to hold above Rs 48000 per 10 grams and saw extended selling as the Indian Rupee hit around one year high against the US dollar. However, the broad undertone in Gold is supportive as the near term outlook for US monetary policy remains lax. The US Federal Reserve Chairman Jerome Powell said that the Fed will need to stay patiently accommodative. The Fed chair said the US is a long way from where it needs to be in terms of employment despite the economy having reclaimed more than 12 million jobs since the early days of the COVID-19 pandemic.