The price of gold continues to rise on Monday mainly still due to the declining position of the US dollar. However, the growth of gold has a noticeable limitation, which is associated with the announcement of the release of a vaccine against coronavirus infection in the near future.

The price of the precious metal rose by 0.5% Monday morning and moved to a new level at $ 1,949.03 per troy ounce.

The US dollar went to another decline on Monday which is supported, among other things, by the instability of economic growth in the country and the more serious impact of the crisis associated with the coronavirus infection. And in general, the global economy is still unable to move away from the consequences of the first wave of the COVID-19 pandemic, which forces investors to work with gold as a protective asset, especially since inflationary risks remain in full.

Market participants are waiting for the speech of the head of the US Federal Reserve System, and looking forward to something positive. Recall that Jerome Powell is to present his vision of the country's monetary policy as early as Thursday this week. It is then that the annual symposium of the chief regulator of the state in Kansas City will begin, which, however, may bring considerable surprises for the market.

This year, the format of the meeting was shifted online due to the fear of the danger of contracting a coronavirus infection.

Everyone anticipates a decision from the country's central bank, which concerns the confirmation of earlier promises to keep interest rates at an extremely low level. If this happens, gold will have another support factor that will push it upwards.

Holding rates will signal that above-normal inflation will not worry the markets too much.

To date, gold and silver are the fastest growing assets this year. However, a long-maturing correction may be approaching. This can only mean that precious metals can go to reduce their positions. Over the past three weeks, there has been a rapid growth in the metals market, which has allowed gold to reach new record levels, located above the strategically important level of $ 2,000 per troy ounce.

Silver, in turn, also significantly strengthened its weak positions, which were associated with the March sale of the metal. Recall that then the precious metal dropped to almost $ 12 per troy ounce. However, to date, its growth has turned out to be so rapid that its price was able to overcome the level of $ 30 per troy ounce.

Now the time is coming on the market when precious metals will struggle with short-term "bearish" trends. However, in the long term, most likely, their value will continue to rise, as indicated by the main fundamental indicators.

Most analysts are inclined to believe that further increases in the value of gold and silver are inevitable since several factors contribute to this. First, the soft monetary and fiscal policy of the countries of the world. Secondly, the actual return on the asset, even if limited by some points. Third, the growing demand for defensive assets, which, among other things, includes gold. The escalating political and epidemiological situation in the world is forcing investors to seek a "safe haven" that will provide them, albeit not so high, but stable income.

However, a badly needed correction is now expected in the precious metals market, which will set all priorities and allow the metal to move on with renewed vigor. In this regard, it should be noted that the rise in the value of gold above $ 2,000 per troy ounce is still limited and practically impossible. However, as the market gets used to this new high, the price increase will continue. Experts agree that the correction can even be quite significant and deep, for which it is worth preparing in advance.

Silver is up 0.57%, allowing it to move to $ 26.84 per troy ounce.

Palladium, on the other hand, began to move in a negative direction and lost 0.21%. Its current level was at around $ 2,178.47 per ounce.

Platinum jumped significantly by 1.61%. Its price moved to the area of $ 933.3 per ounce.