Gold returns to where it started 2021 with
NEW YORK: Gold notched a fresh four-month high as another Federal Reserve official talked down prospects for inflation, piling pressure on Treasury yields. Signs of inflation would “prove to be largely transitory,” Fed Vice Chair Richard Clarida said in a Yahoo! Finance interview. That echoed a number of recent dovish comments from the US central bank, and sent the yield on 10-year notes to the lowest in two weeks.
On Wednesday. gold edged higher after breaching the psychological barrier at $1,900 an ounce, which may have triggered technical buying.
The rhetoric has helped bullion erase its 2021 losses, with a weaker dollar and lower bond rates rebooting demand for the non-interest-bearing metal. Earlier in the year it was dogged by the improving outlook for the US economy following fresh fiscal aid and the success of the vaccine roll-out, which investors feared could see monetary stimulus tapered earlier than expected. Weak US job numbers have helped assuage any concerns of tightening.
Meanwhile, there have been signs of inflationary pressures building in commodity markets and snarled supply chains as the global economy returns to normality, burnishing gold’s appeal as a hedge.
“Exchange-traded fund investors are buying gold again and with the latest moves I assume also commodity trading advisers are probably long gold,” said Giovanni Staunovo, commodity analyst at UBS AG. With those two buying together “you have your powder keg,” he added.
Gold rose 0.5% to $1,908.67 an ounce by 9:20 am in London. The precious metal is up almost 8% this month, on course for its biggest gain since July. Silver, platinum and palladium also advanced, while a gauge of the dollar was little changed. “We believe inflation will level off over the months, and Fed officials to sound less dovish and look for higher nominal rates,” said Staunovo. “we expect gold to trend lower over the coming months.”
I-T dept issues ₹25,301-cr refunds so far this fiscal
NEW DELHI: The income tax department on Wednesday said it has issued ₹25,301 croreworth refunds to over 15.45 lakh taxpayers so far this fiscal. Out of the total amount, personal income tax refunds to the tune of ₹7,494 crore have been issued in over 15 lakh cases. Corporate tax refunds of ₹17,807 crore have been issued to 44,140 taxpayers. “CBDT issues refunds of over ₹25,301 crore to more than 15.45 lakh taxpayers between
April 1, 2021 to May 24, 2021,” the income tax department said in a tweet.
Zydus Cadila, TLC ink pact to market black fungus drug
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FB marketplace likely to face EU antitrust probe
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