CWG Markets: Inflation concerns eased US dollar fell down, gold stayed stable

25 May, 2021

Brad: the Fed is far from reaching the point where it needs to discuss QE reduction. It is expected to see more inflation, but it will be largely temporary.

 

Brad: the Fed is far from reaching the point where it needs to discuss QE reduction. It is expected to see more inflation, but it will be largely temporary.

Bailey, governor of the Bank of England, is worried about digital currency, saying that encrypted digital currency assets are dangerous, causing investors' enthusiasm and the risk of financial innovation out of control.

The U.S. dollar index hovered near the 90 level, falling 0.21% to 89.83 in late trading, slightly higher than the four month low of 89.646 hit on Friday. The yield on the 10-year Treasury note fell 1.7 basis points to 1.60%.

Spot gold held steady to close around $1881, supported by falling dollar and bond yields. COMEX gold futures for June closed up 0.4% at US $1884.50/oz, setting a new closing high for major contracts since January 7.

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