GOLD prices closed at 1729.49 after placing a high of 1730.40 and a low of 1705.76. Gold extended its gains on Thursday and reached the 1730 level amid the continued decline in U.S. Treasury yields and the U.S. dollar. The U.S. Dollar Index that measures the greenback’s value against major six currencies fell below the key level 93 on Thursday. The U.S. Treasury yields on a 10-year note also dropped from its week’s highest level of 1.77% to 1.68%. The yellow metal’s appeal was supported by the safe-haven demand following an unexpected rise in the number of Americans filing new unemployment claims last week. Additionally, U.S. President Joe Biden’s recent announcement of a long-awaited $2 trillion-plus job plan added in demand for yellow metal as it raised concerns over inflation.

Biden’s announced plan also includes $621 billion for rebuilding infrastructure, and it has shifted the market focus back towards the prospects of potential inflation. Investors view gold as a hedge against higher inflation that could follow stimulus measures; however, the rise in treasury yields has lightened some of the non-yielding commodity’s appeals.

On the data front, at 16:30 GMT, Challenge Jobs Cuts for March came in as -86.2%. At 17:30 GMT, the Unemployment Claims from last week rose to 719K against the anticipated 678K and weighed on the U.S. dollar and added further in the rising prices of the yellow metal. At 18:45 GMT, the Final Manufacturing PMI remained flat at 59.1. At 19:00 GMT, ISM Manufacturing PMI raised to 64.7 against the projected 61.5 and supported the U.S. dollar that capped further upside in the precious metal prices. The Construction Spending dropped to -0.8% against the forecast -0.9%. The ISM Manufacturing Prices raised to 85.6 against the expected 83.5 and supported the U.S. dollar that limited the upward momentum in gold prices on Thursday.Meanwhile, on Thursday, the nation’s top infectious disease doctor Anthony Fauci said that the United States might not need AstraZeneca’s coronavirus vaccine even if it wins U.S. regulatory approval. Fauci said that the United States has enough contracts with other vaccine manufacturer companies to vaccinate its entire population and possibly enough for booster shots in the fall.

These comments from the director of the National Institute of Allergy and Infectious Diseases and chief medical adviser to the White House raised the outlook for the U.S. economy and supported the U.S. dollar that capped further gains in gold prices.