Gold is declining as its attractiveness wanes … and the dollar near its lowest level in 3 years


Gold fell yesterday, after US Treasury yields approached the peak of a year, weakening the attractiveness of the yellow metal. However, the dollar’s ​​decline and the Federal Reserve’s pledge to accommodate a policy curbed the decline, according to Reuters.
And gold fell in immediate transactions 0.4 percent, to 1797.73 dollars an ounce, by 0540 GMT, and US gold futures fell 0.1 percent, to 1795.90 dollars.
“Rising longer-term returns is a major stress factor on precious metals,” said Margaret Yang, strategy at the Daily Fix, adding that “hopes for an improvement in economic activity and prices may push yields higher.”
Record US Treasury yields stabilized near the year-long peak they reached in the previous session, which increases the opportunity cost of owning the precious metal that does not generate a return.
Focus remains on a $ 1.9 trillion bailout package to mitigate the coronavirus repercussions in the United States, which are expected to pass later this week.
And contributed to Jerome Powell, Chairman of the Federal Reserve, “the US Central Bank” to keep monetary policy unchanged until the economy returns to a state of full employment and the weakness of the dollar, in limiting gold losses.
As for the other precious metals, silver rose 0.2 percent to $ 28.04 an ounce, and platinum fell 0.7 percent, to $ 1259.05. Palladium fell 0.1 percent, to $ 2434.65, after rising earlier to the highest level in more than a month at $ 2,444.50.
In addition, the US dollar sat near its lowest level in three years against the high risk currencies yesterday, as signs of continued easing of monetary policy by the US Federal Reserve sparked trading in assets that are rising thanks to the improvement in the economic cycle.
The US currency plunged to new lows against the Australian and Canadian dollars, and stood near lows recorded overnight against the British and New Zealand currencies.
Jerome Powell, Chairman of the Federal Reserve, confirmed yesterday that the central bank will not adjust its policy until the economy clearly recovers, and that it will ignore any rise in inflation in the short term. His statements before the House Financial Services Committee echoed his testimony before the Senate the day before.
The easing of financial conditions, and promises of financial stimulus and speeding up the distribution of anti-COVID-19 vaccines, led the money to deliberations betting on improving economic activity and prices.
Commodity-linked currencies are poised to benefit from rising global trade, while investors also welcome Britain’s progress in recovering from the coronavirus pandemic.
And the Australian dollar recorded 0.79672 US dollars, after touching earlier, a new high in three years at 0.7978 dollars. The Canadian dollar reached its highest level in three years during trading at 1.2502 Canadian dollars to the US dollar.
The New Zealand dollar recorded $ 0.7434, slightly off the high it hit yesterday, at $ 0.7455.
The pound rose 0.1 percent, to $ 1.4161, after surging to $ 1.43 overnight for the first time since April 2018.
The euro traded near the upper end of its recent range of $ 1.2178, near nearly a month’s high of $ 1.2180, which it touched earlier this week.
But the dollar rose against the rest of the other traditional safe-haven currencies, to maintain a continuous gain for two days, trading at 105.875 yen, and consolidating near a three-month high against the Swiss franc at 90.945 Swiss francs, which it reached overnight.


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