Gold prices bounced from the recent lows on the first day of March 2021 as the US House of Representatives passed a $1.9 trillion coronavirus relief package late Saturday and also some relief in bond yield supported a positive move in precious metals. However, Government bond yields in the United States, Germany and Australia ended February with their biggest monthly gain in years which kept gold prices under pressure throughout February.
Friday's U.S. economic data was mixed for metals. US Jan existing home sales have increased unexpectedly by +0.6% m/m to 6.69 million, against expectations of a decline to 6.60 million. US Feb Markit manufacturing PMI declined by -0.7 point to 58.5, against expectations of -0.4 to 58.8.
BOE policy makers have echoed Fed officials in reading a surge in bond yields. Their remarks suggest that the UK central bank has no immediate plans to counter the sell-off that quadrupled yields on 10-year government bonds since the start of the year. BOE officials appeared largely unperturbed in a series of appearances last week which is negative for gold prices.
According to the CFTC Commitments of Traders report for the week ended Feb. 23, net long for gold futures fell 19,236 contracts to 215,733 for the week. Speculative long position sank 19,502 contracts, while shorts declined 266 contracts.
Gold prices have bounced from Friday’s losses on coronavirus relief package, however rising bond yield to keep prices under pressure. It may face stiff resistance near $1,772 while key support levels are seen around $1,727 and $1,690.
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Gold Bounced On Coronavirus Relief Package
Published 03/01/2021, 05:29 AM
Updated 07/09/2023, 06:32 AM
Gold Bounced On Coronavirus Relief Package
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