Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Commodities

Gold prices surge amid the backdrop of a weaker US dollar

Olumide Adesina by Olumide Adesina
September 1, 2020
in Commodities
ETF, stocks, shares, investment, equity,Gold loses some shine on hopes for COVID-19 vaccines
Share on FacebookShare on TwitterShare on Linkedin

Gold prices were firmed in the early hours of Tuesday, nearing a two-week high as a weaker greenback and ultra-low interest rate environment kept the gold bulls roaring upward.

U.S. Federal Reserve Chairman, Jerome Powell, recently presented an unusual accommodative policy change that could result in inflation moving upwards, and interest rates staying arbitrarily lower in the long term.

At about 04.33 am GMT, the gold futures contract gained $15.70, to settle at $1,994.30 an ounce.

RelatedPosts

Oil down by over 2% as recession worries grow

Russia defies Western sanctions as oil exports to China hits record high surpassing Saudi Arabia

READ: Global companies are buying Bitcoins to hedge against inflation

Why gold prices are up

The U.S Fed Reserve’s strategy now permits inflation to rise above its 2% target to make up for the time when inflation was below its target, signaling that a long period of very low-interest rates lies ahead.

What you must know about Gold: the yellow metal tends to usually rise in value on expectations of lower U.S interest rates, which reduces the opportunity cost of holding non-yielding bullion. Also, it usually rallies up, when the U.S dollar is showing weakness.

READ: CBN’s MPC unlikely to cut rates, as Nigeria’s foreign reserves hit $36.16 billion

Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, gave vital insights on the macros that made the yellow metal rise in value. He said:

“Gold remained supported overnight by a dip in US yields amid the backdrop of a weaker US dollar.

“The yellow metal now looks like an excellent place to invest in for a few years provided real rates remain lower, which is bound to happen on any reflationary bounce.”

Related

Tags: AxiCorpGoldGold futuresGreenbackStephen InnesU.S Fed ReserveU.S interest ratesU.S. dollaryellow metal

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Hot forex
Cornerstone
Mega Millions
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB
Ikeja Electrics




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Fitch upgrades Fidelity Bank’s issuer default rating from ‘B-’ to ‘B’
    • Fayose insists on a Southern president in 2023, unlikely to support Atiku
    • Top 5 reasons why you should consider France for your studies

    Follow us on social media:

    Recent News

    How Fidelity Bank is driving digital financial inclusion in Nigeria with impressive half year 2021 result

    Fitch upgrades Fidelity Bank’s issuer default rating from ‘B-’ to ‘B’

    June 29, 2022
    Ayo Fayose

    Fayose insists on a Southern president in 2023, unlikely to support Atiku

    June 29, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com