Gold has started the new trading week on the front foot and is regaining some of the losses it suffered last week.
While some of the move is merely a slight rebalancing with equities also recovering slightly, the price of gold was given a further boost by the Group of Seven nations planning to announce a ban on new gold imports from Russia.
Live Gold Price – $/oz
Russia has already been effectively barred from selling its gold for a number of months since the London Bullion Market Association, which sets the standards for gold trading, removed Russian refiners from its Good Delivery list back in March. So while the G-7’s announcement is more symbolic than having a material impact on the availability of gold supplies, it gives traders a fresh motive to push the price of gold back upwards having drifted towards the bottom end of its trading range last week.
Later this week there is a slew of speeches from key central bankers, including Christine Lagarde, Andrew Bailey and Jerome Powell, which should provide markets with a clearer indication of how hawkish the policies of their respective banks are likely to be over the coming months.
With gold having seen its gains capped and the price forced down as a result of the series of interest rate hikes the Federal Reserve in particular has imposed, holders of the precious metal will be hoping the bankers give indicators that there is no need to increase the expected pace of the planned rate rises.
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