Gold prices continue to gradually strengthen on March 11 morning, the price of gold has already risen to $1,730 per ounce, traders are assessing the prospects for inflation and support for the US economy, according to trading data, Report informs referring to Prime agency.
As of 9:15 (GMT+4), the price of the April futures for gold on the COMEX New York stock exchange rose by 0.5 percent, or by $8.65 - to $1,730.45 per troy ounce. Silver futures for May rose 0.93 percent to $26.372 per ounce.
Gold prices are influenced by dollar expectations in light of inflation forecasts and support for the US economy. During the last three trading sessions, the dollar has depreciated somewhat, which supports the price of the precious metal. A weaker dollar makes gold more accessible to investors holding a different currency.
Traders fear that the recovery of economic indicators, including inflation, may serve as a signal for the gradual curtailment of measures to support the economy by regulators. At the same time, earlier the House of Representatives adopted and sent for signature to US President Joe Biden an updated version of the support package for $1.9 trillion.
In general, gold has recently been more sensitive to the dollar than to risk sentiment, although traditionally gold is considered a more reliable asset. At the same time, the continuing uncertainty around the pandemic continues to support the price of gold at current levels - before the first news about the coronavirus, gold cost around $1,550-1,600, and last summer the price jumped to $2,000.
Markets are also awaiting a series of meetings of the world’s major central banks. The next meeting of the European Central Bank will take place later on March 11, and the meeting of the US Federal Reserve, the Bank of England and the Bank of Japan – next week.