Gold price has hit new all-time high as China’s central bank says stocks should move into a ‘new normal’
Posted On July 12, 2021
GOLD RIVER, Alabama – The price of gold surged to an all-year high on Wednesday, setting a new all time high of $1,074 an ounce in New York.
Gold surged to $1.0971 an ounce at 11:31 a.m.
ET (21:31 GMT) from $1-1.03 an ounce on Monday, while silver rose to $16.11 an ounce from $15.76.
The greenback, which is often referred to as the “gold standard”, is up more than 8% in 2016.
The price of silver is up 2.2% in 2017 to $23.16 an ounce, while the greenback is up 1.4% to $28.21 an ounce.
Gold futures rose 1.5% to settle at $1:1034 an ounce as the Federal Reserve met for its monthly policy meeting.
“The recent sell-off in gold prices is clearly not helping our economy,” Federal Reserve Chair Janet Yellen said.
“I am confident that a stronger dollar will be helpful to our businesses and households.”
The gold and silver futures prices are the latest in a string of moves by the dollar as a benchmark, which has helped lift US inflation in recent years.
The dollar rose by more than 5% against a basket of currencies on Wednesday.
The dollar has been rising against other major currencies, including the euro and Japanese yen, in recent months as investors buy U.S. Treasury bills, gold and other assets to boost their holdings.
Gold has gained more than 2% this year, helped by a rally in the price of oil.
Gold is the main international asset in the United States, accounting for more than 90% of the value of U. S. assets.
Silver has lost more than 1% this week to settle down 1.3% from its recent peak.
On Tuesday, gold futures traded up 2% at $US917.57 an ounce and silver 1.2%, while gold futures dropped 3% to trade at $15,936.35 an ounce after falling to a record low of $US14,966.50 on Thursday.
Silver rose to its highest level since November 2015, when it hit a record high of more than $US16,000 an ounce just days after Donald Trump’s victory in the U.K. election.
As part of the global rally in gold and the dollar, China’s government said on Tuesday that the Shanghai Composite Index will increase its annual rate by 0.6% from Tuesday.
That will be the first increase in the index since February, when China’s stock market surged.
China’s central banker also warned on Tuesday against the risk of “irrational exuberance” in the market, warning that excessive buying was leading to market volatility.
In addition, China has increased the amount of gold and gold-backed securities it has available to buy and sell.