Gold prices fall as dollar remains firm
- 04 Feb 2021
Gulf Today Report
Gold prices decline on Thursday as the dollar gained, affecting its appeal and investors look to the passage of US stimulus package.
Spot gold dropped 0.6% to $1,822.01 per ounce by 03:30 GMT. US gold futures fell 0.6% to $1,823.90.
The dollar hanged close to a two-month peak on Wednesday and the benchmark 10-year Treasury yields jumped to its highest in three weeks.
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Michael McCarthy, chief market strategist at CMC Markets said: "The rise in yields is telling us the central banks are working on how they will lift the interest rates and withdraw stimulus rather than the other way round."
A surge from cryptocurrencies recently has affected gold making it lose its appeal. Also, investors are waiting for the Bank of England policy decision due later today.
Focus also remained on a $1.9 trillion US coronavirus aid plan, which was pushed by the US House without Republican support.
