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Gold futures were up close to $ 1,700 today. Positive factors of the slowdown in the profitability of the US government debt.
At 9:39 pm Thai time, the gold contract on the COMEX (Commodity Exchange) market is delivered in June. It bounced $ 11.90, or 0.68%, to $ 1,697.90 an ounce.
However, gold prices are likely to post their biggest drop this quarter in more than four years, hit by a rebound in US Treasury yields and the appreciation of the dollar.
The rebound in yields on US government debt. The opportunity cost of losing gold will increase. Because gold is an asset that has no return in the form of interest.
Analysts say a rally in US Treasury yields will entice investors to buy bonds. While selling gold Adjust investment portfolios in security assets
Also, a stronger dollar reduces the attractiveness of gold. By making gold contracts more expensive for holders of other currencies.
The yield on 10-year US Treasuries reached 1.77 percent, reaching a 14-month high yesterday. It was fueled by the hope that the American economy will recover. Including the forecast of a rebound in inflation. Between advances in COVID-19 vaccination and the government’s readiness to announce infrastructure spending plans.
Credit Suisse expects 10-year US Treasury yields to reach 2% in the second quarter.
Investors await President Joe’s plans to invest more than $ 2 trillion in infrastructure. Biden today
Investors, meanwhile, are on the lookout for March non-farm employment figures in the United States on Friday. While analysts predicted that the employment figure will rise by 630,000 in March. And the unemployment rate is expected to drop to 6.0%.
Last month the US Department of Labor reported a 379,000 increase in nonfarm payrolls in February. It was higher than analysts expected, an increase of 210,000, while the unemployment rate fell to 6.2 percent in February, lower than analysts expected it to stabilize at 6.3 percent.
– Infoquest Translated and edited by Kongkiat Kor Virakiti Tel. 02-2535000 Email: [email protected]–
