Gold Reaches Its Highest Level in a Week as Yields And US Dollar Decline

Gold prices rose Thursday, March 11th, to their highest in more than a week, after weaker inflation data in the United States halted the advance of Treasury and dollar yields.

And gold profit in spot transactions 0.4% to 1733.46 dollars per ounce, after reaching its highest level since the third of March at 1734.55 dollars earlier. And US gold futures rose 0.6% to $1732.20.

And record US bond yields remained weak, while the dollar fell after the consumer price index data released on Wednesday did not change expectations that inflation would exceed the central bank’s target of 2%.

The recent high yields threatened the status of gold as a hedge against inflation, as it means a higher opportunity cost of owning the metal that does not generate a return.

Investors are now looking to the European Central Bank’s policy meeting later today to see if policymakers will take any action to curb the rise in yields.

A bill to finally mitigate the repercussions of Corona in the United States, worth $1.9 trillion, won final approval on Wednesday and is expected to give a strong impetus to the economic recovery.

As for the other precious metals, silver increased 0.5% to $26.30 an ounce. Palladium fell 0.1% to $2,303.11, while platinum gained 1.1% to $1,216.32.