The opening of the European session saw gold trading rebound after a low decline, with spot gold trading positively around $ 1,745 an ounce.
With the depreciation of the US dollar and lower 10 -year US treasury yields, gold trading continued to gain support to rise higher towards the $ 1,750 price level per ounce.
Federal Reserve (Fed) chairman Jerome Powell, speaking at the Economic Club of Washington early Thursday morning, said the U.S. central bank would reduce its monthly bond purchases before committing to an interest rate hike.
This suggests the current loose monetary policy will continue as the Fed has previously told that interest rates will remain the same until at least the end of 2022.
This factor also supported the price of the yellow gold metal to rise higher at the beginning of the European session.
Investors ’focus is now on the publication of US unemployment claims and retail sales data for March to get clues on the world’s largest economic recovery.
According to analysts, a significant increase in spending on retail sales could drive a decline for the precious metal gold in the short term.
