Gold declines as dollar and US Treasury yields gain
14 Jan 2021
Picture used for illustrative purpose. FIle
Gulf Today Report
Gold prices fell on Thursday after US Treasury yields and the dollar regained and investors wait for US President Joe Biden’s coronavirus stimulus proposal.
Spot gold fell 0.1% to $1,842.51 per ounce while US gold futures slipped 0.8% to $1,839.80.
According to reports, Joe Biden’s coronavirus relief aid plan expected later in the day amounts to about $2 trillion. It has pushed benchmark 10-year Treasury yields in near ten-month highs and lifted the dollar.
Margaret Yang, DailyFX strategist said "fiscal stimulus will help boost economic recovery, leading to rising real interest rates as well as bring up Federal Reserve's tapering hopes; on the flip side, it'll also increase the inflation outlook."
She added that gold is likely to struggle as the stimulus will have both positive and negative effect on it.
"Gold prices can continue to lift, but we also acknowledge the bear case scenario, where coronavirus vaccines roll out quickly and successfully lead to the pandemic coming under control through the year," said Lachlan Shaw, National Australia Bank's head of commodity research.
Silver rose 0.4% to $25.24 an ounce. Platinum climbed 0.6% to $1,100.93, while palladium eased 0.1% to $2,382.33.