Gold composite has risen by 0.47% to $1907.25
Gold reached its highest point in four months on Wednesday, as the Fed continued to dismiss fears of inflation.
The gold composite has risen by 0.47% to $1907.25 at lunchtime in the UK, and is up by 7.3% over the past month.
Vice Chair of the Fed Richard Clarida said yesterday that pricing pressure will be shown to be “largely transitory”, as the central bank restated its dovish monetary policy stance.
Gold’s price surge also came in the aftermath of the crypto market crash, as the commodity is seen by many as a competing store of value with bitcoin.
Other precious metals, including silver, platinum and palladium, have advanced this month.
The Australian Government’s Department of Industry, Science, Energy and Resources (DISER) believes that gold production will increase by 5.5% in 2021 and by 3% in 2022. This is following a 3.9% decline during 2020.
DISER added that the vaccine roll-out across the world would minimise the disruption to gold mining after 2022.
The agency also expects Australia to overtake China as the largest producer of gold in the world in 2021, as miners adapt to increasing prices of the precious metal.