Even though the vaccination progress in the Eurozone is slower than that of its peers, the United Kingdom and the United States, the tightening of monetary policy may be faster than expected when compared to the United States. The European Central Bank (ECB) Deputy Governor Luis De Guindos said in a newspaper interview on Monday that if the if the Eurozone vaccination program progresses smoothly, once the vaccinations reach 70% of the adult population and the economy starts to grow again, the ECB will consider withdrawing the transitional loose monetary policy. These remarks are very different from Fed Chairman Powell’s statement at the interest rate meeting last week that inflation is only a short-lived phenomenon, and that the bureau is not in a hurry to tighten its monetary policy.
The price of gold has embraced its largest range of fluctuations in 13 trading days and is trying to break the $1,800 threshold. Due to the US ISM Manufacturing Purchasing Managers Index (PMI), India’s epidemic and optimism about the new crown vaccine, Fed Chairman Powell and US Treasury Secretary Yellen downplayed inflation concerns, all giving gold prices a boost. However, as the markets in China and Japan are currently closed, the upward momentum brought about by optimistic momentum is limited. Looking ahead, the new data from the Reserve Bank of Australia will attract investors to the gold market. As of 08:25 Hong Kong time, the price of gold fell slightly by 0.12% to US$1,790.80.
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