The rise of the dollar pushes gold into the red

Gold prices fell, today, Thursday, as US Treasury yields and the dollar rebounded, while investors awaited details about the next US President Joe Biden’s proposal to stimulate the economy.

In spot transactions, gold fell 0.1 percent to $ 1842.51 an ounce, while US gold futures fell 0.8 percent to $ 1839.80 an ounce.

Reports that Biden’s plan to provide aid to alleviate the repercussions of the Coronavirus has pushed record 10-year US Treasury yields up near a ten-month high and helped lift the dollar.

“The fiscal stimulus will strengthen the economic recovery, leading to higher real interest rates as well as raising hopes for a cut by the Federal Reserve, on the other hand, which will increase inflation expectations,” said Margaret Yang, an economist at the Daily Fix.

As for the other precious metals, silver rose 0.4 percent to $ 25.24 an ounce. Platinum rose 0.6 percent to $ 1100.93 an ounce, while palladium fell 0.1 percent to $ 2,382.33 an ounce.

Source: Reuters

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