Gold futures fell nearly $ 30, nearing the $ 1,820 level on the day. Affected by the appreciation of the dollar. And the rebound in US government bond yields
At 11.27 PM Thai time, the gold contract in the COMEX market (Commodity Exchange) is delivered in February. It fell $ 29.0, or 1.56 percent, to $ 1,822.40 / ounce.
A stronger dollar will reduce the attractiveness of gold. By making gold contracts more expensive for holders of other currencies The rebound in US government bond yields. It will increase the cost of the opportunity to lose gold. Because it is an asset that has no return in the form of interest.
Analysts state that A rebound in US Treasury yields will attract investors to buy bonds. While selling gold To adjust investment portfolios in the security asset group
However, gold prices were driven by Joe Biden’s announcement of economic stimulus measures that the US President Including the Federal Reserve (Fed) signaled not to raise interest rates.
Fed vice chairman Richard Clarida said the Fed would continue to freeze near 0% and there would be no rate hike. Until inflation hit the Fed’s target of 2% for a year.
Biden announced a $ 1.9 trillion stimulus package. Which aims to help households and businesses cope with the COVID-19 epidemic.
Biden said: Pushing for the stimulus is a priority task after he assumed the presidency on Jan. 20.
The measure is expected to be approved in the House of Representatives. But Biden may need to make an effort to push it through the Senate. As Democrats and Republicans now have the same number of votes at 50-50 and passing the measure requires at least 60 votes, Biden needs to rely on Republicans. At least 10 votes in passing the said measure
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