July Gold News 2021

Economic growth in the UK dropped sharply in July due to staff and material shortages, hitting the lowest levels in nine months.

According to the latest data from IHS Markit and the CIPS composite output index, growth dropped from 62.2 to 57.7 points – a 7.24% decline.

The pound has fallen to its lowest level in fourth months against the US dollar today, as markets grow more concerned about a resurgence of Covid-19. Despite a stronger than expected economic recovery so far this year, there are signs this is running out of steam and that things may take a downward turn in the near future.

Both the US and UK have reported further rises to inflation this week, in further signs that central banks may be wrong to claim inflation is just a transitory issue.

The consumer price index for June showed prices have risen by 5.4% year on year in the US, the highest rise since 2008, and far higher than the Federal Reserve’s target of 2%.

Gold has seen a small boost in price this week following further signs that central banks are once more buying gold. Gold reserve purchases had largely stopped throughout 2020, as central banks focused on the economic toll of Covid-19, but there are increasing signs that purchases have resumed.