March 26, 2021
Gold dips to near 1 week low as U.S. dollar stands tall
(Reuters) - Gold prices slipped towards a one-week low on Friday, on course for a first weekly decline in three, with bullion pressured by a rallying dollar following positive U.S. economic data and as vaccine roll-outs gathered steam.
Spot gold was down 0.2% at $1,724.03 per ounce on Friday, having hit a one-week low of $1,721.46 in the previous session. U.S. gold futures were down 0.1% at $1,722.70 per ounce.
"Gold is a victim of the kind of recovery that we could be potentially seeing in the U.S. dollar ... Better recovery unfolds so that's driving flows into U.S. assets and pushing the dollar higher and that's what's really weighing on gold at the moment," said IG Market analyst Kyle Rodda.
For the week, the metal has lost more than 1% as the U.S.
dollar climbed over a four-month high on Thursday.
Data showed the number of Americans filing new claims for unemployment benefits dropped to a one-year low last week.
U.S. President Joe Biden set a new goal of administering 200 million doses of COVID-19 vaccine in his first 100 days in office, after his initial 100 million target was met ahead of schedule.
"The success of the vaccine roll-out appears to be slightly 'risk on' and this may help gold if the dollar retreats slightly," said Nicholas Frappell, global general manager at ABC Bullion.
Treasury yields also jumped on Thursday, denting bullion's safe-haven appeal. Another bond market sell-off is likely in the next three months following the recent rout in financial markets, according to analysts polled by Reuters.
Higher returns on Treasury bonds generally increase the opportunity cost of holding non-yielding bullion.
Silver edged up 0.1% to $25.04, holding above an over two-month low of $24.39 per ounce hit on Thursday.
Palladium gained 0.5% to $2,621.18 and platinum rose 0.2% to $1,150.01.