For the second week in a row, gold managed to catch its breath and record good weekly gains with the losses chasing the US dollar against the global basket of currencies.
The yellow metal futures ended the week’s trading up 0.6%, at the level of $ 1810.6 an ounce, achieving gains for the third consecutive week by 1.5%. The spot price of gold also increased by 0.4% at the level of $ 1810.5 an ounce.
The precious metal’s gains come with the US dollar heading for losses against a basket of global currencies, as the green US dollar fell against the euro by 0.2%, recording $1.1872. The US dollar also fell against the British pound by 0.7% at the level of $1.3878. The dollar rose against the Japanese yen by more than 0.4% at the level of 110.200 yen.
The Federal Reserve had recently stressed the need for the United States to be prepared in the event of significant inflation or other economic risks. The minutes revealed division over the view of inflation risks, given the relatively high unemployment rates, with estimates that the US central bank could cut asset purchases earlier than expected. And he indicated that the opinion of the majority of officials is that the risks of inflation tend to the upward direction.
The US Federal Reserve Chairman, Jerome Powell, stressed that a decision will not be taken to raise interest rates too quickly because of fears of an increase in the rate of inflation. “We will not preemptively raise interest rates because we fear potential inflation,” he said during a hearing before Congress. “We will look for evidence of actual inflation or other economic imbalances.”
According to a recent report by the World Gold Council, about a third of the global production of the precious metal during the past year, equivalent to about 29.5%, came from three countries, namely China, with a share of 10.6%, equivalent to about 368.3 tons, and then Russia, with a share of 9.5%, equivalent to about 331.1 tons, Then Australia, with a share of about 9.4%, equivalent to about 327.8 tons.
In fourth place, the United States of America came with a production volume of about 190.2 tons. Canada ranked fifth with a production volume of about 170.6 tons, followed by Ghana in sixth place, with a production volume of about 138.7 tons.
In seventh place, Brazil came with a production volume of about 107 tons, and in eighth and ninth place globally came Mexico and Uzbekistan with a production of 101.6 tons each. And in the tenth and last place, Indonesia came in with a production volume of about 100 tons during the year 2020.