{"id":1181090,"date":"2020-04-28T14:41:37","date_gmt":"2020-04-28T19:41:37","guid":{"rendered":"https:\/\/www.mining.com\/?p=1022043"},"modified":"2020-04-28T14:41:37","modified_gmt":"2020-04-28T19:41:37","slug":"gold-price-on-decline-ahead-of-fed-decision","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1181090","title":{"rendered":"Gold price on decline ahead of Fed decision"},"content":{"rendered":"<p>Gold declined for the third day in a row on Tuesday, as the prospect of a gradual reopening of economies directed investors&#8217; attention away from safe-haven assets.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Gold futures for June delivery fell 0.1% to $1,721.30 an ounce as of 2:35 p.m. EST on the Comex, after falling to an intraday low of $1,704.10 earlier. Spot gold fell below the $1,700 mark for the first time in almost a week but has since recovered to $1,707.60.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/361614425-1024x576.jpg\" alt=\"\" class=\"wp-image-1022048\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/361614425-1024x576.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/361614425-300x169.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/361614425-768x432.jpg 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/04\/361614425.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n<p>The gold price is still sitting near its highest point in more than seven years amid the current health crisis as investors &#8212; aided by <a aria-label=\"cash injections from government stimulus (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.mining.com\/trillions-flooding-financial-markets-send-gold-price-to-7-year-high\/\" >cash injections from government stimulus<\/a> &#8212; hedged their money into historically safe assets like the precious metal.<\/p>\n<p>Given that economic uncertainties will likely persist, investors will be closely monitoring the financial decision maker&#8217;s next moves. Both the Federal Reserve and the European Central Bank are expected to make policy announcements this week, which could entail <a aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.cnbc.com\/2020\/04\/27\/the-fed-says-it-is-expanding-its-municipal-bond-buying-program.html\" >further measures<\/a> to keep money flowing in their respective economies.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>&#8220;The gold market is in a wait-and-see mode ahead of the central bank meetings\u201d<\/p>\n<p><cite>Ole Hansen, head of commodity strategy, Saxo Bank A\/S<\/cite><\/p><\/blockquote>\n<\/figure>\n<p>\u201cThe gold market is in a wait-and-see mode ahead of the central bank meetings,\u201d said Ole Hansen, head of commodity strategy at Saxo Bank A\/S. \u201cWhile a weakening dollar is providing some support today, investors are waiting for fresh drivers and, most importantly, a breakout.\u201d<\/p>\n<p>Investors will also pay close attention to the potential economic fallout\u00a0of the government&#8217;s responses to the coronavirus pandemic. Many are concerned that the unprecedented monetary policies seen around the world could be a ticking time bomb leading to a deep recession with high interest and inflation rates.<\/p>\n<p>\u201cThe trillions of dollars being spent to save our virus-battered economy are stoking fears of inflation,\u201d&nbsp;Steve Forbes, chairman and editor-in-chief of Forbes Media, said in a <a aria-label=\"podcast last Friday (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.forbes.com\/sites\/steveforbes\/2020\/04\/24\/buy-gold-now-how-stimulus-packages-will-drive-gold-prices-to-record-highs--whats-ahead\/#4db740332362\" >podcast last Friday<\/a>. <\/p>\n<p>Forbes also said that regardless of the economic scenario, gold\u00a0will retain its status as a hedge asset and is a must-own in every investor\u2019s portfolio, given how well it has performed historically during economic downturns. <\/p>\n<p>David Kelly, chief global strategist of JPMorgan\u2019s asset management unit, <a aria-label=\"wrote in a Monday note (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.institutionalinvestor.com\/article\/b1ld0bhs5gzs9s\/Inflation-Never-Materialized-After-the-Last-Crisis-JPMorgan-Thinks-This-Time-Is-Different\" >wrote in a note<\/a> on Monday that investors would be &#8220;well-advised to structure their portfolios with an eye to the possibility&#8221; that an inflation bomb may go off in the aftermath of the coronavirus recession.<\/p>\n<p>Kelly added that real assets such as real estate and precious metals \u201ccan serve an important, although long-redundant role, in protecting a portfolio against the risk of inflation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold declined for the third day in a row, but is still near its seven-year peak.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1181090"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1181090"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1181090\/revisions"}],"predecessor-version":[{"id":1181122,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1181090\/revisions\/1181122"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1181090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1181090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1181090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}