Gold is gaining 0.2% to $1,779.10 an ounce after closing lower yesterday on comments from Janet Yellen. The Treasury Secretary and former Fed Chair suggested that the central bank may raise interest rates to prevent the economy from overheating.
However, she later clarified her comments by saying that she was not anticipating or recommending a rate hike. In her view, inflation is not a sustainable problem for the economy when it rebounds from the pandemic.
Compared to its historical high of August 6, 2020, at 2,067 dollars, gold is down 14%. It should be noted, however, that the decline in gold in euros is less significant (-4.5% since the beginning of the year).
Against the backdrop of an improving economic outlook as support plans and vaccination unfold, 10-year rates in the US have risen from 0.9% at the end of 2020 to 1.6% today. At the same time, inflationary pressures remained contained across the Atlantic earlier this year.
As an anti-crisis asset par excellence, gold is suffering from the renewed appetite of investors for risk, which is reflected in the current record highs in the equity markets. The yellow metal is also suffering from the competition of metals.