Gold is surging back with price gains this week, as the US dollar weakens once again and U.S. Treasury Yields – which prompted a window to buy at the end of February after reaching a one-year high – begin to fall to levels we have been more accustomed to seeing. Precious metal prices surged 2.1% yesterday (Tuesday) to £1,235 ($1,716.11) on the back of these declines.
Bob Haberkorn, senior market strategist at RJO Futures said the dip is nothing but good news for gold, noting “I don’t know if this is the end to the upside trend in yields, but it’s a start. Gold [has] been waiting for this.”
The market drops for Treasury yields and the weaker dollar come at a time when the huge multi-billion dollar stimulus package devised by President Joe Biden to support the hard hit US economy looks almost certain to be passed this week – pumping yet more fiscal support into the market. We have previously seen measures like this being extremely powerful for the gold bulls, meaning we should expect to see gold continue on its upward trajectory and continue to rise over the coming weeks.