Gold futures rose Thursday morning, supported by a pullback in bond yields and a weak US dollar, a day after the precious metal posted the worst quarterly loss since 2016. The first gold contract April GCJ21, + 0.42% was up $ 10, or 0.6%, to $ 1,725.60 an ounce, after a 1.8% gain on Wednesday. June GCM21 gold, + 0.45%, which is now the most active, was up $ 9.60, or 0.6%, to $ 1,725.20 an ounce, after a 1.8% gain a day ago.
The move for gold comes as the yield on the 10-year Treasury note TMUBMUSD10Y, 1.694% was back below 1.7% and the DXY dollar, -0.18% was retreating from its recent rise. The weakness of the US dollar can make assets quoted in the currency more attractive to foreign buyers and a pullback in bond yields can reduce the opportunity costs of investing in precious metals, which do not offer a coupon, versus risk-free public debt. . Some experts speculated that a combination of undoing bullion bets and buying in late March, as well as rebalancing after the first three months of 2021, could help boost beleaguered precious metals. “Rebalancing the quarter and hedging shorts may help the precious metal to recoup some losses after a terrible quarter,” wrote Raffi Boyadjian, senior investment analyst at XM. Meanwhile, commodity traders were scrutinizing initial jobless claims that rose from 61,000 to 719,000, compared with estimates of a gain of 675,000 and last week’s figure of 658,000, which fell. Investors are still breaking down the details of President Joe Biden‘s infrastructure plan and assessing the likelihood of the bills passing through Congress, which would affect the outlook for gold as market participants assess the outlook for impact. of greater fiscal stimulus and tax increases in the economy. See: Biden Launches $ 2.3 Trillion Infrastructure Plan: ‘It‘s Bold, Yes, And We Can Do It‘ So far, upbeat economic data, fiscal stimulus and positive vaccine developments have weighed on gold prices, undermining its attractive haven.