Gold prices rose on Wednesday, hovering near their seven-week highs reached earlier this week.
This comes due to the high demand for the yellow metal, which is considered a safe haven due to the decline in US Treasury revenues.
Spot gold rose 0.5% to $ 1786.80 an ounce by 0657 GMT, after reaching $ 1,789.77 on Monday, its highest level since February 25.
And won US gold futures 0.5% to 1786.90 dollars an ounce.
“The US dollar has declined this morning, which supports prices, in light of the continued bullish momentum for gold witnessed during the night during trading in Asia,” said Jeffrey Haley, chief market analyst at Oanda, “Provided that the US Treasury yields for ten years remain weak, it appears that gold It is gaining strength to test its 100 day moving average at $ 1802 an ounce in the coming days. ”
Gold is seen as a hedge against inflation that may follow stimulus measures, but higher Treasury yields have wiped out some of the metal’s no-return appeal this year.
As for the other precious metals, silver rose 0.9% to $ 26.09 an ounce. Palladium gained 0.9% to $ 2786.94, while platinum rose 1% to $ 1199.03.
The dollar is suffering
The dollar index weakened, to record its lowest level in about 7 weeks against its competitors, while the yields of US ten-year bonds fell below 1.6%, reducing the opportunity cost of possessing the yellow metal that does not yield a return.
Traders are now looking forward to the European Central Bank meeting on Thursday for more clarity on the stimulus plans for the bloc.
The US Federal Reserve is due to hold its policy meeting next week.
The US currency, which is considered a safe haven, received some support from the decline in global stocks from record highs, as the escalation of Corona virus infections from India to Canada deteriorated expectations for a rapid global recovery.
The dollar index, which tracks the performance of the US currency against 6 currencies, reached 91.254 in Asia after it fell to 90.856 on Tuesday for the first time since the third of March.
The index has fallen 2.1% since the beginning of the month.
And the single European currency was trading at $ 1.20275, after touching a seven-week high of $ 1.2079 overnight.
The benchmark 10-year Treasury yields are around 1.56%, near their lowest levels since mid-March, as they continue to hold after retreating from a 14-month high of 1.7760% reached at the end of last month.