Gold prices bounce back as dollar drops

Gulf Today Report 

Gold rebounded on Thursday following decline in US dollar and Treasury yields and support from President Joe Biden’s $2 trillion-plus jobs plan.

Spot gold rose 0.4% to $1,713.55 per ounce by 05:40 GMT while US gold futures were down 0.2% to $1,712.30 per ounce.

The dollar declined, making gold less expensive for holders of other currencies. On the other hand, Joe Biden unveiled his second multitrillion-dollar plan. 

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According to Jeffrey Halley, senior market analyst at OANDA said "the package itself is reasonably revenue neutral, meaning less bond issuance than expected. That allowed bond yields to remain stable, which helped gold move higher over the day."

Gold serves as shield against inflation that could arise due to stimulus measures injected into the economy, however, the recent surge in US Treasury yields has weighed on the non-yielding commodity.