Gold continued to hover around the $ 1,850 ounce level ahead of the weekend trading, as the strengthening of the US dollar and higher treasury yields limited the rise in precious metals.
Entering the European session, gold traded slightly up at $ 1,850 per ounce, while gold futures hovered around $ 1,849 per ounce (3.20pm Malaysian time).
Previously, the yellow metal had received support from the speech of Federal Reserve (Fed) Chairman Jerome Powell in a ‘dovish’ tone.
Jerome Powell rejects the possibility that the Fed will reduce its asset purchases in the near future by reiterating that the central bank remains committed to using its various monetary policy tools to support the US economy.
According to Powell, it is still too early to discuss the reduction of bond buying programs as the US economy is still far from inflation targets and central bank employment.
Powell's statement has led to the depreciation of the US dollar and thus supported the rise in gold prices
In addition, prices also garnered support from a $ 1.9 trillion stimulus package launched by President Joe Biden during the Asian session. Prospects from this economic assistance plan have increased the attractiveness of gold as a protector of inflation.
At the same time, however, the increase was also limited due to the increase in US treasury yields which has led to the rise of the US dollar.
