A stronger dollar and an improvement in US Treasury yields are driving bearish moves in gold early on Thursday, as markets turn their attention to US President-elect Joe Biden to lay out his plans for more stimulus measures to boost the economy. At the time of writing, GOLD is trading at a little above $1,842.

Gold shares a negative correlation with the US dollar as a weaker currency makes the yellow metal more affordable for holders of other currencies. The US dollar has been strengthening in recent sessions over optimism that Biden could unleash more stimulus measures and improve the health of the US economy – a factor that has helped US Treasury yields rise to the highest levels seen since March 2020 and helped boost the value of the greenback as well.

The yellow metal has come under pressure in recent sessions over an improvement in the overall market sentiment. Traders are focusing on the rollout of the COVID-19 vaccine across the US and other parts of the world, in hopes that it could help bring the pandemic under control and send the global economy back towards recovery.

Later today, gold traders will be eyeing Biden’s comments as he reveals more details on his plan for additional stimulus measures to repair the US economy after the damage driven by the ongoing coronavirus pandemic. The yellow metal could also see some movement on comments from Fed Chair Jerome Powell at a webinar as well as the release of the latest unemployment claims from the US later in the day.