Gold Hovering Near a 7-Week High as US Bond Yields Decline

Gold prices stabilized today, Friday, near their highest levels since late February, and is on the path of achieving the second consecutive weekly gain, supported by the decline in US Treasury revenues and the weakness of the dollar.

Gold settled in spot transactions at $1,762.70 an ounce, with the beginning of European trading, after reaching its highest levels since February 26 at $1,769.37 on Thursday. And the yellow metal is more than 1% higher since the beginning of this week.

And US gold futures fell 0.1% to $1,763.80.

Record US Treasury yields fell to their lowest level in a month, reducing the opportunity cost of owning the metal that does not yield a return. The dollar is heading towards its worst consecutive weekly decline this year.

Meanwhile, data revealed that China’s economy expanded at a record pace in Q1, expanding 18.3% year on year.

Recent economic readings from the United States and China have boosted hopes for a speedy economic recovery and prompted investors to buy riskier assets.

And earlier this week, Federal Reserve Chairman Jerome Powell and other US central officials said that a brighter economic outlook and a short period of high inflation would not affect monetary policy and that the central bank would maintain its support until the crisis ends.

Gold tends to benefit from broad stimulus measures from central banks because it is seen as a hedge against inflation.

As for the other precious metals, silver fell 0.1% to $25.84 an ounce. Palladium rose 0.2% to $2,744.91 and had a profit of about 4% for the week. Platinum rose 0.4% to $1,198.04.