Gold prices rose today, Monday, in conjunction with the decline in the dollar index, while investors await US inflation data scheduled for release this week, which may affect the future of the Federal Reserve's monetary policy.
The yellow metal suffered strong declines on Friday, following the issuance of employment data, which was strong this time and higher than experts' expectations, and higher than the previous month's figures, which motivates the Fed to tighten monetary policy for the coming period because the economy is still strong. Where prices were hovering at the time near levels of $ 2000 an ounce.
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Gold has been hovering near $2,000 for weeks, but how long will prices stay at these levels?
Gold and the dollar now
Gold futures rose 0.22% to $2029.
And gold rose in instant transactions, by 0.2%, at 2021 dollars an ounce.
The dollar index declined by 0.13%, at 100.86 points.
US debt ceiling
Meanwhile, investors are also watching developments surrounding the US banking sector and the US debt ceiling.
On Sunday, US Treasury Secretary Janet Yellen issued a warning that Congress' failure to act on the debt ceiling could lead to a constitutional crisis.
US Treasury Secretary Janet Yellen said that failure to raise the debt ceiling would cause a sharp economic contraction in the United States.
She added that her current expectations indicate that at the beginning of June her country will be unable to pay its obligations unless Congress raises the debt ceiling, calling on Congress to approve raising the debt ceiling.
Waterer said gold would be among the main beneficiaries if there are further signs of weakness in the US economy and prices could move to $2,100 sooner rather than later.
The United States of America reached the debt ceiling in January at levels of $31.4 trillion, after which the Treasury Department began implementing exceptional measures.
Economic uncertainty and low interest are attracting demand for zero-yield bullion.
gold purchases
The World Gold Council confirmed, in its quarterly report, issued on Friday, that demand for the precious metal decreased during the first quarter by 13% on an annual basis, to reach 1,081 tons.
The Council confirmed the decline in demand for gold globally, in the first quarter, despite the purchases of central banks during the same period, expecting the continuation of the pace of purchases by central banks in the current quarter.
The council indicated that central banks bought 228 tons of gold during the first quarter, which is the largest amount that central banks buy in the first quarter of any year since the start of data recording in 2000.
