Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold approaches 1-week peak as traders bet on patient Fed
On Thursday, gold grew in European trade, approaching a one-week peak, reacting to Fed Chair Janet Yellen's congressional testimony to gradually lift interest rates.
In New York, gold futures hit $1,222.49 a troy, rising approximately 0.3%.
On Wednesday, prices tallied a third-straight profit after Yellen sounded quite cautious on inflation. She also stressed that the Fed wouldn’t require lifting rates for the purpose of reaching current low estimates of the neutral funds rate.
Yellen added that the American economy is healthy enough for the major US bank to start winding down its huge $4.5 trillion balance sheet at some point in 2017.
Experts considered the speech to be mostly dovish.
The US dollar index slumped nearly 0.3%, showing 95.31 in early trade, which is not far from the nine-month minimum of 95.22 achieved in late June.
Profits of the benchmark 10-year American Treasury declined to 2.32%, off peaks near 2.39% hit the previous week.
The market has started the week with a mixed sentiment…
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.