The price of Gold Increased on Monday 1st November 2021. However, as the dollar strengthens and inflation rate pushes higher, Pressure is mounting on the U.S. Federal Reserve to develop a monetary policy limiting the supply of dollars, The resulting effects of these variables has led to an increase in the price of Gold.
Gold future rose by 0.13% to $1,786.15 at 4:03 GMT, The yellow metal’s price remained below the $1,800 mark after dropping to its lowest value in a week on Friday. Gold increased marginally on Monday after rising to its highest value since October 2021, This was predictable since dollar moves inversely to Gold.
The Federal Reserve insisted that the current inflationary pressure in the U.S. is temporary. However, Data revealed on Friday refuted the sanguine statement. According to data from the Personal Consumption Expenditure Price Index (PCEPI), Inflation was quoted at 4.4% year-on-year and 0.3% month on month in September 2021.
Speaking on the inflation crisis in the U.S., Janet Yellen The US treasury Secretary explained that she still views inflation as a temporary result of severe supply chain bottlenecks, which will normalize in 2022.
The Federal Reserve will announce its policy decision on Wednesday, while Reserve Bank of Australia and the Bank of England handing down their policies on Tuesday and Thursday respectively.