Gold futures rose slightly early Thursday, supported in part by a fall in the US dollar, as investors awaited comments on the world economy from Federal Reserve Chairman Jerome Powell around noon. However, gold has been in a slight uptrend of late, and is forecast to rise in four of the last five sessions, if its gains hold for the day.
“One of the main drivers of the recent gold sell-off has been the continued rise in US Treasury yields, as the market continues to assess the inflationary effect of US fiscal and monetary largesse. USA, ”wrote Nick Cawley, strategist at DailyFX. com. June GCM21 gold, + 0.54% GC00, + 0.54% traded $ 7.40, or 0.4%, higher at $ 1,749 an ounce on Comex, after falling 0.1% on Wednesday. The dollar was down 0.2%, as measured by the ICE US Dollar Index DXY, down -0.23%. Powell will give a speech on the world economy at 12 p.m. ET at the annual spring meetings of the International Monetary Fund and the World Bank in Washington, which could move bullion prices. The Fed chairman’s comments come a day after the minutes of the Fed’s March 16-17 policy meeting were released on Wednesday. The account of that March meeting shows that it would be “some time” before the Fed began to reduce its asset purchases, a decision that would depend on making substantial additional progress toward the Fed’s inflation and employment targets.