Revenue contracts for gold on Thursday rose for a third straight session, helped by a recent decline in U.S. dollar recovery and a backdrop of yields for government debt.
Retailers also took to the European Central Bank’s notice on Thursday to accelerate bond purchases under their pandemic emergency buying program, or PEPP, leaving the “envelope” for total purchases unchanged at € 1.85 trillion. The ECB left benchmark rates unchanged.
The move came ahead of next week’s Federal Reserve policy meeting and appeared to spur lower sovereign debt yields, helping bullion to gain more traction.
On Wednesday, the House approved the $ 1.9 trillion COVID fiscal spending package that is expected to be signed into law by President Joe Biden. Meanwhile, a report that closely followed consumer inflation suggested that inflation was not as hot as some investors feared, which helped reduce the U.S. dollar and encouraged a rise in it. the result, reversing in precious metals that do not offer a coupon.
“The dollar’s decline following approval from the $ 1.9 trillion stimulus package and weaker-than-expected inflation have raised the price of gold and removed some recent fears about bullion,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades, in a research note Thursday. .
The analyst said gold may be against the first test of its current “bullish wave” at around $ 1,760, which is seen as a defensive position for the fund to recover.
April Gold on Comex GC00,
GCJ21,
it went up $ 9.10, or 0.5%, at $ 1,731.10 an ounce, after a 0.3% gain in the previous session.
Meanwhile, May SI00 money,
SIK21,
added 27 cents, or 1%, to trading at around $ 26.40 an ounce, after slipping 0.2% on Wednesday.
TMUBMUSD10Y 10-year Financial Note,
Thursday was around 1.49%. Bond prices rise as yields fall. At the same time, the US dollar, as measured by the US DCE IX DXY Index,
down 0.3%.