Gold prices, which soared at the beginning of the US week, is bullish today as the U.S markets week starts.
This was with a weaker U.S dollar coupled with global inflation soaring above the $1,800 trading range.
Recall that so far, Gold has been struggling to gain momentum this year. The yellow metal is down 6.85% at the current market price of $1,809, as of the time of writing this report.
Gold seems to be gaining momentum as Central banks from Serbia to Thailand have been adding to gold holdings.
In Ghana also, the country recently announced plans for purchases, as the worry of accelerating inflation looms and a recovery in global trade provides the firepower to make purchases.
On the data front, Japan’s household spending grew 11.6% year-on-year in May, which was higher than the 10.9% growth in forecasts prepared by Investing.com but lower than April’s 13% growth. It contracted by 2.1% month-on-month.
In Europe, the Market composite purchasing managers’ index (PMI) for June was 59.5, while the services PMI was 58.3. Both PMIs were higher than expected, with businesses in the area expanding at the fastest pace in 15 years.
Global shares remained close to record highs on Monday, boosted both by the European data and the latest U.S. jobs report released on Friday. However, concerns about the Delta variant of COVID-19 remain.
Investors are now focused on the minutes from the Fed’s June meeting to be released tomorrow for indications on how the U.S Feds plans to tackle inflation. The U.S. Institute of Supply Management (ISM) non-manufacturing PMI for June is also expected to be released later in the day.
