Gold Gaining With Improved Appetite on Dollar and US Bond Yields

Gold prices rose on Wednesday, April 21, hovering near their seven-week highs reached earlier this week, as demand for the safe-haven metal increased due to declining US Treasury revenues.

Spot gold rose 0.5% to $1786.80 an ounce, after reaching $1789.77 on Monday, its highest level since February 25.

US gold futures gained 0.5% to $1786.90 an ounce.

Market traders are now looking forward to the European Central Bank meeting on Thursday to get more clarity on the stimulus plans for the bloc. The US Federal Reserve is due to hold its policy meeting next week.

Gold is considered a hedge in the face of inflation that may follow stimulus measures, but the rise in Treasury yields has wiped out some of the metal’s appeal, which is not yielding a return this year.

As for the other precious metals, silver rose 0.9% to $26.09 an ounce. Palladium gained 0.9% to $2786.94, while platinum rose 1% to $1199.03.