PRECIOUS-Gold retreats as dollar firms, Treasury yields gain
Shafaq News/ Gold prices inched lower on Thursday as U.S. Treasury yields and the dollar rebounded, while investors awaited details on incoming U.S. President Joe Biden's coronavirus stimulus proposal.
Spot gold XAU= fell 0.1% to $1,842.51 per ounce by 0530 GMT, while U.S. gold futures GCv1 slipped 0.8% to $1,839.80.
Reports that Biden's coronavirus relief aid plan, due later in the day, costs around $2 trillion pushed benchmark 10-year Treasury yields US10YT=RR near ten-month highs, and helped lift the dollar. USD/ 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," said DailyFX strategist Margaret Yang.
So, gold will be struggling around these price levels as the stimulus will have both positive and negative impacts on it, she added.
Investors will also be focused on further clues on the U.S. monetary policy outlook when Fed Chair Jerome Powell participates in a virtual event, due at 1730 GMT.
The Fed said on Wednesday the U.S. economy was growing modestly, although the optimism was tempered due to a surge in coronavirus cases. 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.
That can prompt the Fed to start contemplating the policy reversal a bit sooner, he added.
The U.S. House of Representatives passed a single article of impeachment accusing President Donald Trump of "incitement of insurrection", making him the first president in U.S. history to be impeached twice. XAG= rose 0.4% to $25.24 an ounce. Platinum XPT= climbed 0.6% to $1,100.93, while palladium XPD= eased 0.1% to $2,382.33.