Gold today

Gold Today

Gold boosts attraction, encouraging some safe-haven purchase due to falling treasury yields and U.S./China/Russia tensions which marks gold prices with highest finish in seven weeks. Furthermore, good reports regarding the U.S. economy health moved up gold and provided support for bullion given the threat of inflation.

Tensions between the U.S. and China over Taiwan have increased, the Biden administration expelled some Russian diplomats and announced sanctions against dozens of people and companies, partly in retaliation to Russia’s interference in last year’s presidential election. The tough talks of U.S. with China and Russia might be a sign of markets starting to price in a new risk where equity markets are oblivious presently.

June gold, GC00, -0.12% GCM21, -0.12% rose $30.50, or 1.8%, to settle at $1,766.80 an ounce, the highest settlement for a most active contract since 25th of February and largest one day dollar and percentage increase March 9th, FactSet data show. A closely followed report on U.S. retail sales showed a 9.8% rise in March thanks to $1,400 stimulus checks from the government to consumers, reflecting accelerating economic growth in the aftermath of the Covid pandemic.

Also, the U.S. retail sales number have brought optimism amongst traders and more momentum is on its way in terms of gold price as the dollar index loses its strength more because the Fed Chari informed markets already of rates not going higher anytime soon. Bond yields were pulling back, with the 10-year Treasury BX: TMUBMUSD10Y trading at 1.54% and a fall in government debt yields can boost precious metal’s attraction.

Gold prices continue to be supported by the Fed’s historically unprecedented accommodative monetary policy, negative real rates, a weaker U.S. dollar and growing inflation concerns.

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