Gold Eases as US Dollar, Treasury Yields Strengthen
Gold prices are sliding lower on the back of a a strengthening in the US dollar, even as rising expectations of additional fiscal stimulus
Early on Thursday, gold prices are sliding lower on the back of a a strengthening in the US dollar, even as rising expectations of additional fiscal stimulus measures speeding up economic recovery in the US weigh on the safe haven appeal of the precious metal. At the time of writing, GOLD is trading at a little above $1,816.
The US dollar shares a negative correlation with gold, as whenever it strengthens, it becomes more expensive for holders of other currencies to buy bullion. Prices of the yellow metal have also eased following a strengthening in US Treasury yields, which have further weakened its appeal as a safe haven asset.
During the previous session, President Biden’s proposed fiscal stimulus package was passed by the US House of Representatives without the support of Republican senators. Markets widely expect the next round of stimulus measures to further strengthen economic recovery across the US in the wake of the coronavirus crisis.
Gold is also expected to weaken towards the end of this week on the release of a strong employment report from the US. Economists have forecast an addition of 50k jobs to the economy during January, a significant improvement after 140k jobs were shed in December due to the resurgence in coronavirus cases across the country.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals