Thursday’s gold futures traded lower as U.S. bond yields rose and a stronger dollar created some headlines for bullion buying.
“Gold is lower because the metal is still locked in a trade arena without breaking all sides for now,” wrote Peter Cardillo, chief market strategist at Spartan Capital Securities.
The long-term outlook for the yellow metal is among some retailers for higher prices, amid expectations of further relief from the government to boost economies with a growing virus.
President Joe Biden is expected later Thursday to unveil a $ 2 trillion fiscal spending package that would include more direct payments to American families and substantial state and local funding.
Gold prices in the long run could rise against that backdrop that bullish investors say.
However, the winning yield of the U.S. Treasury, which competes against gold for harbor demand, and the perkier dollar, measured by the U.S. ICE Dollar Index DXY,
has put pressure on gold prices, experts speculate.
The Treasury’s 10-year yield was around 1.10% on Thursday and had risen to 1.19% earlier in the week. Gold and other precious metals will not offer a coupon.
Separately, the dollar rose 0.1% at around 90.47. A stronger buck at the price of money can make money more expensive for foreign traders.
Against the background, February GC00 gold prices,
GCG21,
trading $ 12, or 0.6%, lower at $ 1,843.10 an ounce, after a 0.6% rise Wednesday.
Delivery for March SI00,
SIH21,
at the same time, it was trading 19 cents, or 0.7%, lower at $ 25.41 an ounce.
Meanwhile, U.S. weekly weekly jobless claims rose by 181,000 to 965,000 seasonally adjusted in the seven days ended Jan. 9, the government said Thursday.
The rise in the reading for unemployment insurance to its highest level since August could support arguments for a further stimulus, which could affect gold trading.