Gold reaches a peak of 7 weeks as US bond yields drop

Friday, April 16, 2021 - 20:53
Point Trader Group
Gold reaches a peak of 7 weeks as US bond yields drop

Gold prices rose today, Friday, to their highest levels in seven weeks, and is on the path of achieving the best weekly gain since mid-December, fueled by the decline in US Treasury bond yields and the weakening of the dollar.

Spot gold jumped 0.9 percent to $ 1779 an ounce by 1426 GMT, after hitting its highest level since February 25 at $ 1783.55 earlier in the session.

It is more than 2% higher since the beginning of this week.

US gold futures rose 0.6% to $ 1777.30.

"We are on track to increase towards the $ 1,800 level," said Edward Moya, chief market analyst at Oanda.

"We have seen many investors abandoning some of their positions due to some of the technical excessive selling that we saw with the Treasury yields, and this here really provided a strong background for gold prices to continue to rise."

Record US bond yields hovered near the one-month low they reached in the previous session, while the dollar fell against rival currencies.

The rise of gold came despite data showing strength in US retail sales and a significant decrease in new applications for weekly unemployment benefits.

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