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March 14, 2021

Gold Turns Away!

 The precious metal gold returned to show a decline as the market headed towards the weekend.

Ahead of the opening of the European session, spot gold traded lower at $ 1,712 per ounce, while gold futures were gloomy at $ 1,709 per ounce (2.30pm Malaysian time).

News of U.S. President Joe Biden who has signed a $ 1.9 trillion stimulus package bill into law, has previously supported gold trading.

However, after 10 -year US treasury yields again showed gains in the Asian session today, and the US dollar also rose, the golden yellow metal returned to reduce its previous gains.

Usually news of this stimulus package will provide support for this commodity as a hedge to inflation, but due to rising bond yields, it causes limited movement of gold.

10 -year bond yields rose higher at 1.54%, after recording a significant decline of 1.47% during the New York session.

Meanwhile, the dollar index, which measures the strength of the greenback dollar, traded strong at 91.68 ahead of the start of the European session.