Slowly, Gold Rises And Interest Rates Normalize

Slowly easing, gold has only lost once this month. Gold’s spot went down 0.2 percent this period, making it $1,243.40 per ounce. Gold futures for the month of August were down as well.

According to the Euro Zone, central banks in Britain and Canada have set programs up during the financial crisis. It seems as if the programs are losing momentum as interest rates normalize.

The Federal Reserve chose to raise U.S. interest rates during their meeting in June. They did so because they believe it will help to lower $4.5 trillion put into bond holding.

According to Capital Economics analyst Simona Gambarini, there are still two more rate hikes scheduled for this year. She also said that policies will become stricter in the United Kingdom and Europe.

Slowly, Gold Rises And Interest Rates Normalize

Germany’s bond-yield that has been going on for the past decade almost made its first leap since back in 2015. It was at the top for yields all across Europe. As investors get ready for an end to ultra-easy monetary policies, yields in Europe stay rising.

On the other end of the world, the U.S. Treasury yield was at a six-week high as of Thursday.

Yields going up help offset the dollar weakening. The dollar has been at it’s lowest it’s been since 2010.
According to a note from MKS, said that as the U.S. dollar has gone down, it has not had the effect on gold as previously thought.

Other precious metals have had their ups and downs this session. Silver has gone down slowly another 0.5%, leaving it at $16.55 per ounce. Silver lost the most this quarter. Palladium did the best by going up 5.6 percent his session. Though palladium did go down 0.6% this session leaving it at $843.23 an ounce. Platinum rose 0.3% on Friday, making it $922.90 an ounce.