Gold sets for gain on weak US Treasury yields, dollar

Gulf Today Report 

Gold recorded little change on Friday as it gears for a third straight weekly gain following the effect of US President Joe Biden’s tax decision on US Treasury yields and dollar.

Spot gold was steady at $1,783.28 per ounce by 05:45 GMT while US gold futures rose 0.1% to $1,783.90 per ounce.

Stephen Innes, chief global market strategist at Axi said, "the knock-on effect from the tax hike (proposal) is attracting bond investors and the yields have dropped, and this is providing a little bit of lift-off for gold."

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The outcome of the US Federal Reserve’s decision next week is the big question facing gold markets, he added.

US 10-year Treasury yield ticked lower on news that Biden will roll out a plan to raise taxes for high earners. A subdued dollar also raised gold's appeal for other currency holders.

In a note, ANZ analysts said, the surge in coronavirus cases has affected the revival of physical gold demand in India.