Gold’s price retreated from its two-week high as positive data from the world’s biggest economy bolstered hopes for a quick economic recovery from COVID-19, despite the recent lockdowns seen in Western Europe.
At press time, Gold futures edged lower by 0.20% to trade at $1,739.45 an ounce amid falling U.S. Treasury Yields, while the greenback slipped to a two-week low.
Just recently, the job openings report in the U.S for February posted a two-year high of 7.367 million; hiring also recorded its biggest surge in 9 months.
However, Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, spoke on the prevailing market conditions giving the precious metal the needed support in the mid-term amid the falling value in the U.S dollar.
“Gold jumps as the US dollar and yields fall. And with the dollar not responding to “US exceptionalism,” it still leaves room for further price climbs.
Gold prices firmed in volatile Asian and European trading as the Easter holidays ended and full trading got back underway. Gold received support from the FX markets as EUR/USD retained Monday’s gains, putting gold on a firm footing.
And as we all know, gold in a dollar weaker environment tends to remain tethered at the hip to the Euro.”
Metal pundits argue that the current weakening of the greenback and a recent easing in yields will effectively provide the accelerant to a rally in gold and silver in the midterm.