On Thursday, in the face of a flurry of upbeat economic data underscoring an earlier-than-anticipated recoup from the pandemic’s fiscal fallouts in the US and EU, spot gold futures feathered up amid a steep plunge in US Dollar alongside US Treasury bond notes.
In point of fact, while appetites for riskier assets seemed to be improving ahead of a critical April jobs data scheduled to be released on Friday, curbing out the safe-haven bid of American currency, gold futures’ prices climbed more than 1 per cent to storm past a key $1,800/ounce psychological handle.
In point of fact, in the day’s robust gains in spot gold futures’ prices were almost entirely catalysed by an increase in appetite for riskier assets alongside a weakening US Dollar, which in effect had lifted the safe-haven yellow metal contracts’ prices to a nearly three-month high.
In tandem, investors’ optimism of a solid economic recovery stepped up further earlier in the day after US Labour Department had said that that the number of Americans filing for first-time state unemployment benefit dropped below 500,000 for the first time since mid-March, while eurozone composite PMI (Purchasing Managers’ Index) data for April came in above an analysts’ expectation of 53.7, eventually rubbing out US Dollar’s safe-haven bid amid a rise in appetite for riskier assets.
Aside from that, the US Fed had affirmed on Wednesday that it would keep monetary policy accommodative and benchmark borrowing costs unchanged to a near-zero level while maintaining its bond buyback program until solid signs of a job growth alongside its inflation target of 2.0 per cent, bolstering the bullion’s safe-haven bid further.
Gold storms past $1,800/ounce amid renewed safe-haven bid
Citing statistics, in the day’s commodity market round off, spot gold futures’ prices gained 1.6 per cent to $1,814.50 an ounce after hitting a session-high of $1,817.90, the strongest level since February 16, while US gold futures’ prices jumped 1.8 per cent to $1,815.70.
In the thick of other precious metals, palladium shed 1 per cent to $2,943.37 an ounce, still hovering at a spitting distance to its record closing high of $3,017.18 hit on Tuesday, while silver spiked 3.2 per cent, climbing to a nearly two-month peak of $27.34 per ounce and platinum futures soared 2.1 per cent to $1,250.74.
Concomitantly, smaller Bitcoin rival Ethereum had hit a new high above $3,600 earlier in the day. Meanwhile, referring to a lag in US Treasury bond Yields with 10-year US Treasury bond notes having been traded at 1.57 per cent, much lower than a 14-month peak of 1.77 per cent reached a month earlier, a senior market analyst at OANDA, Edward Moya said, “We really have yet to see a strong rebound in Treasury yields. ”