Gold Declining But Heading For The Best Week in 7 Weeks

Gold prices plummeted today as high US revenues and the strength of the dollar imposed pressure on the yellow metal, but it is heading to record its best weekly performance in seven weeks.

In spot transactions, gold lost 0.3% to $1716.86 an ounce in Asian trading. The metal fell to its lowest level in nine months on Monday, but the decline in Treasury yields sparked a recovery in gold’s position on the path of achieving a weekly gain of 1%.

US Treasury yields rose, raising the opportunity cost of holding gold, while the dollar recovered from its lowest level in nearly a week.

Investors are now awaiting the Federal Reserve meeting next week to set the direction of its monetary policy.

On Thursday, US President Joe Biden signed a $ 1.9 trillion stimulus bill to enter into force and said he would work to speed up immunizations against Covid-19 and push the country further to close to its normal state by the fourth of July.

As for the other precious metals, silver fell 0.6% to $ 25.91 an ounce, but it is heading for the best week since late January, up 2.9%. Palladium fell 0.2% to $2,339.48.

Platinum rose 0.4% to $1,200.31 and is on track for its best weekly performance in four weeks, with a gain of 6.3%