Gold Recovering From a 3-Week Low as The Dollar’s Rise Has Been Halted

Gold rose again Thursday, April 1, from a three-week low it reached in the previous session, as the US dollar and Treasury yields declined, while President Joe Biden’s plan of more than $2 trillion for jobs provided further support for the yellow metal’s appeal as a hedge against inflation.

And gold rose in immediate trading 0.4% to 1713.55 dollars an ounce by, after touching its lowest level since the eighth of March at 1677.61 dollars on Wednesday. And US gold futures fell 0.2% to 1712.30 dollars an ounce.

The dollar index declined after reaching a multi-month high on Wednesday, which reduces the cost of gold to holders of other currencies.

Biden announced the second legislative proposal worth several trillions of dollars within two months of taking office, and includes 621 billion dollars to rebuild the infrastructure.

Gold is seen as a hedge in the face of rising inflation that may follow stimulus measures, but a recent increase in US Treasury yields has put pressure on the yellow metal, which does not yield any returns.

As for the other precious metals, silver fell 0.3% to $24.31, while platinum fell 0.4% to $1182.04, and palladium settled unchanged at $2,618.31.