Gold finally managed to break the $ 1,800 price wall in the New York session, and continued higher gains in today’s Asian session by trading firmly at $ 1,815 per ounce.
This was driven by the decline of the US dollar and the continued weakening movement of US treasury yields, thus supporting the trade of the yellow gold metal to soar to a 3 -month high.
US 10 -year bond yields remained weak around 1.56%, approaching a two -week low.
The US dollar, meanwhile, slipped to a one -week low against its major rivals, making gold cheaper for holders of other major currencies.
Moreover, the strengthening of prices was also supported by the statements of some Federal Reserve (Fed) officials who continued to voice emphatically that the central bank would maintain the current interest rate despite seeing the rise in inflation as it was considered only temporary.
Earlier, US Treasury Secretary Janet Yellen said that US interest rates needed to be raised to curb rising inflation and ‘overheating’ in the economy.
In the meantime, the next market focus will be targeted at the release of the US NFP report which is expected to show an increase of 978,000 new jobs in April.
