Gold Prices Focused on Powell's Presentation

Gold prices focused on Jerome Powell's second presentation today.

Gold prices soared, with the comments of Fed Chairman Jerome Powell on policy and growth in his presentation at the Senate, and stated that support for the economy affected by the coronavirus outbreak will continue. Gram gold, on the other hand, reached over 410 TL by following the rise in USD/TL exchange rate and global gold prices. Powell underlined that although he expected economic activity to return to normal in the remainder of 2021, monetary support will continue. Apart from Powell's presentation, the House of Representatives rolled up its sleeves to pass the relevant law into parliament towards the end of the week, making its way through Biden's $ 1.9 trillion stimulus package. Gold investors are closely monitoring the economic support package in the US and developments regarding the Fed's asset purchase program. There was a slight decline in the 10-year US Treasury bond interest rates after the announcements.   Ounce Gold Gold rose by around $ 20, up 1.36 percent since the week's opening, after entering the new week with a flat rate of $ 1,785 per ounce. This decline of gold, which saw the lowest levels of the last 7 months and 2021 last week, was caused by the increasing bond yields and the strengthening US dollar. Ounce gold has gained 1.31 percent since the beginning of the week, after losing more than $ 40 at its close last week. Gold traded at $ 1,805 with a 0.3 percent loss.   Edward Moya, Senior Market Analyst at Oanda, said: “Gold is still in danger, as Powell hasn't made a statement on rising bond yields recently. US bond yields could rise further before the Fed intervenes, which could worsen the short-term outlook for gold.”   Gram Gold On the other hand, the gram price of gold reached over 410 TL, along with the rise in USD/TL rate and the price of gold that gained value in global markets. Despite the flat course of the USD/TL rate last week, after the sharp decline in gold prices in global markets, the gram gold reached gold of 400 TL after a long time. With the effect of the increase in global gold prices and the USD/TL rate gaining 1.67 percent, gram gold is traded around 416 TL, rising by more than 3 percent this week.