Commodity News
HeadLine : Gold flat as Fed expected to stick to tapering plans
Date : Oct 11 2021
Gold prices were flat on Monday as the bullion was caught between a dip in the dollar and fears that the U.S. Federal Reserve would start paring stimulus this year despite weak jobs data. Spot gold was flat at $1,756.25 per ounce. Prices hit a two-week peak on Friday after the payrolls data but pared gains during the session. U.S. gold futures were unchanged at $1,756.80. The dollar index inched down 0.1%. The benchmark U.S. 10-year Treasury yields touched its highest level since early June on Friday. Data from the Labor Department on Friday showed U.S. nonfarm payrolls increased by 194,000 jobs last month way below economists’ forecast of 500,000. Bullion is seen as a hedge against the inflation and currency debasement likely from the widespread stimulus. The Fed’s tapering could tackle both those conditions, diminishing gold’s appeal. Physical gold rates in India flipped to a discount for the first time in over two months last week as a rise in local prices curbed demand, while buying in China was expected to pick up after the Golden Week holiday.

Source: Reuters
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