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Gold hits one-week high as US Treasury yields decline
Gold prices rose on Thursday, extending gains for the third straight day and hit a 1-week high as the US dollar fell against its peers, after the Treasury bond yields declined.
Gold prices rose 0.8% to a 1-week high of $1,739.86 an ounce, after opening at $1,726.47, and hit a day high at $1,723.24.
The yellow metal closed higher by 0.6% yesterday, within recovery attempts from its 9-month low of $1,676.77.
The dollar index fell 0.3% today, deepening its losses for the third day and hit its 1-week low of 91.52 points.
The greenback is being weighed down by improved risk appetite, after the US Treasury bond yields retreated.
The 10-year yields fell 3%, extending losses for the third straight day, and pulled back from the 13-month high of 1.622%, after data showed the US consumer price grew less than expected in February.
The House of Representatives passed the $1.9 trillion Covid relief bill before sending it to President Joe Biden, who's expected to sign it into law over the weekend.
Gold stocks at the SPDR ETF fell 1.75 metric tonnes yesterday, with the total at the lowest level since April 28, 2020 at 1,060.23 metric tonnes.
US unemployment claims better than expected
At 13:30 GMT, the US Department of Labor reported that the unemployment claims for the week ending March 5 fell by 712K, better than forecasts of 730K, and better than the previous reading of 745K after it was revised from 754K.
Oil rises for second straight day on US stimulus
Oil prices continued to rise as the US market opened on Thursday, extending gains for the second straight day thanks to hopes of a recovery in the US fuel demand after approving a huge stimulus package, which offset a surge in the US crude inventories.
US crude rose 1.2% to $65.60 a barrel, after opening at $64.84, and hit a low of $64.57, and Brent crude rose 1.3% to $69.02 a barrel, after opening at $68.15, and hit a low of $68.02.
US crude gained 1.4% yesterday, and Brent crude futures rose 1.5%, their first gain in 3 days, thanks to improved market sentiment after the US Treasury yields fell.
The House of Representatives passed the $1.9 trillion Covid relief bill before sending it to President Joe Biden, who's expected to sign it into law over the weekend.
US Treasury Secretary Janet Yellen said that President Joe Biden's $1.9 trillion aid package will provide enough resources to fuel a very strong economic recovery.
The US Energy Information Administration reported on Wednesday that crude inventories rose 13.8 million barrels during the week ending March 5, missing forecasts of a drop by 3 million barrels.
The total commercial inventories rose to about 498.5 million barrels, the highest level since the week ending December 18.
The US production rose 900K bpd last week, at a total of 10.9 million barrels per day, after the weather in Texas improved and production restarted.
