Commodity News
HeadLine : Gold futures get a boost as Evergrande woes lead to risk-off sentiment
Date : Sep 21 2021
Gold futures climbed on Monday, ending higher for the first time in four sessions. The precious metal found support, in part, due to worries about the potential collapse of Chinese property developer Evergrande. As a safe haven asset, gold was buoyed by fears over broader economic uncertainty around Evergrande. The recovery happened despite concerns about tapering and a potentially hawkish stance from the Fed. The Fed meeting is casting its shadow via a firm dollar because a majority of market participants expect the Fed to signal tapering sometime later this year, keeping gold in check. Investors have been anticipating that the Fed would start reducing bond purchases and hike interest rates back to pre-pandemic levels at some point. A hawkish stance from the Fed could keep gold mired. People are reacting to what’s happening in China but this week’s Fed’s meeting is also important. Anything suggesting a fairly earlier tapering would be out of consensus and that would mean a pretty significant correction in gold prices.

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