Gold futures are trading slightly better late in the session on Friday, recovering from more than a seven-month low hit earlier in the day. The potential reversal suggests value buyers may be coming in with the market currently straddling a longer-term support area.
A lower U.S. Dollar likely provided the lift gold needed to prevent a wash-out to the downside, while rising Treasury yields kept a lid on any major upside movement.
At 21:26 GMT, April Comex gold is trading $1781.00, up $6.00 or +0.34%. At its current price, the precious metal is set to finish about 2.4% lower for the week, its biggest weekly drop since the week of January 8.
Treasury Yields Rise Amid Concerns about Higher Inflation
Treasury yields climbed on Friday amid concerns about the possibility of higher inflation. Treasury Secretary Janet Yellen told CNBC on Thursday that she thinks President Joe Biden’s $1.9 trillion stimulus package is needed to get the U.S. economy back to full strength.
“We think it’s very important to have a big package [that] addresses the pain this has cause- 15 million Americans behind on their rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses failing,” Yellen said.
Dollar Edges Lower as Investors Favor Higher-Risk Currencies
The dollar lost ground on Friday as market participants favored currencies associated with risk-on sentiment over the safe-haven greenback.
Risk appetite was stoked by better-than-expected economic data and expectations that U.S. President Joe Biden’s proposed $1.9 trillion coronavirus relief package will come to fruition.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire