Gold Rallies to $1,724.80 as Dollar Extends Slide
However, much the relief is to investors, the previous metal has in recent times witnessed some short coverings and has been able to regain some of the lost grounds in recent times.
Spot gold rose 0.2% to $1,724.80 per ounce by 0101 GMT. Prices were up 1.4% for the week so far, their biggest jump since the week ended Jan. 22.
U.S. futures for the commodity was steady at $1,723.10.
Benchmark U.S. Treasury yields pulled further down from a more than one-year peak hit last week, reducing the opportunity cost of holding non-interest paying gold.
The dollar hovered near a one-week low against rivals.
The European Central Bank said on Thursday it would accelerate money-printing to keep a lid on euro zone borrowing costs, signaling to skeptical markets that it is determined to lay the foundation for a solid economic recovery.
The number of Americans filing new claims for jobless benefits dropped to a four-month low last week.
U.S President Joe Biden prepared to tell Americans in a televised address that he is taking aggressive action to speed Covid-19 vaccinations and move the country closer to normality by July 4, hours after signing his $1.9 trillion stimulus bill into law on Thursday.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.5% to 1,055.27 tones on Thursday.
Silver climbed 0.1% to $26.11 an ounce, and was on track for its best week since late January with a 3.7% rise.
Palladium gained 0.2% to $2,349.52 while Platinum rose 1.2% to $1,209.10 and was set to post its best week in four with a 7% gain.
Despite the performance, ETFs backed by the yellow metal continued to see sustained outflows, exerting pressure on the precious metal. Holdings of SPDR Trust, the the world’s largest gold-backed exchange-traded fund, fell 0.5% to 1,055.27 tones on Thursday.