Gold continued to plunge lower below $ 1,700 an ounce after being buried by 10 -year U.S. treasury yields that soared even higher.
In the Asian session, gold traded weakly around $ 1,678 an ounce, taking it plummeting to a 9 -month low.
The benchmark 10 -year U.S. government bond yield hit its latest 14 -month high of 1.77%, pushing the greenback dollar higher against most major currencies.
U.S. consumer confidence index data for March published yesterday also showed strong market optimism for an economic recovery in the coming months.
This has left the yellow metal trade under pressure, compounded by Federal Reserve (Fed) policymakers ’confidence in the U.S. economic recovery backed by vaccine launches and massive fiscal assistance by the government.
Market focus is now on US President Joe Biden’s announcement that he will launch an infrastructure plan estimated at $ 3 trillion and also include higher tax increases.
