Gold on track for best week in seven as yields, dollar slide
Spot gold and US gold futures rise as easing US Treasury yields and dollar lift the metal’s appeal
Gold prices inched up on Friday and were on course to mark their best week in seven, as easing US Treasury yields and dollar lifted the metal’s appeal.
Spot gold rose 0.2% to $1,724.80/oz by 1.01am GMT. Prices were up 1.4% for the week so far, their biggest jump since the week ended January 22. US gold futures was steady at $1,723.10/oz. Benchmark US Treasury yields pulled further down from a more than one-year peak hit last week, reducing the opportunity cost of holding non-interest paying gold. The dollar hovered near a one-week low against rival currencies.
The European Central Bank said on Thursday it would accelerate money-printing to keep a lid on eurozone borrowing costs, signalling to sceptical markets that it is determined to lay the foundation for a solid economic recovery.
The number of Americans filing new claims for jobless benefits dropped to a four-month low last week. President Joe Biden prepared to tell Americans in a televised address that he is taking aggressive action to speed up Covid-19 vaccinations and move the country closer to normality by July 4, hours after signing his $1.9-trillion stimulus bill into law on Thursday.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.5% to 1,055.27 tonnes on Thursday.
Silver climbed 0.1% to $26.11/oz, and was on track for its best week since late January with a 3.7% rise. Palladium gained 0.2% to $2,349.52/oz. Platinum rose 1.2% to $1,209.10/oz and was set to post its best week in four with a 7% gain.
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