Gold began to decline on Thursday as the dollar and U.S. Treasury yields rebounded, with investors awaiting details about U.S. President Joe Biden's economic stimulus proposals.
Gold fell in spot transactions by 0.1% to $1,842.51 per ounce, while U.S. gold futures dropped by 0.8% to $1,839.80 per ounce. Sources indicated that Biden's plan to provide aid to mitigate the impact of the coronavirus, set to be announced later today, costs approximately $2 trillion. The yields on standard U.S. 10-year Treasury notes rose near their highest level in ten months, which boosted the dollar. It was added that gold would face challenges at those price levels, as stimulus affects it positively and negatively. The Federal Reserve stated on Wednesday that the U.S. economy is growing at a modest pace, but optimism has waned due to rising coronavirus infections. Meanwhile, silver rose by 0.4% to $25.24 per ounce, platinum increased by 0.6% to $1,100.93, while palladium decreased by 0.1% to $2,382.33.
