Gold futures plunged more than $ 20 to close to $ 1,700 today. The stock market rebound and US Treasury yields have been a factor in reducing the attractiveness of gold.
The price of gold was also pressured by the strength of the dollar. This makes gold contracts more expensive for holders of other currencies.
At 20.32 Thai time, the gold contract in the COMEX market (Commodity Exchange) is delivered in April. It fell $ 25.60, or 1.47%, to $ 1,708.30 an ounce.
A rebound in US government bond yields It will increase the cost of the opportunity to lose gold. Because gold is an asset that has no return in the form of interest.
Analysts state that A rebound in US Treasury yields will attract investors to buy bonds. While selling gold To adjust investment portfolios in the security asset group
The price of gold has also been hit by progress in the COVID-19 vaccination in the United States.
The President Joe. Biden revealed that Adult Americans can get COVID-19 vaccine. Everyone by the end of May. That’s two months ahead of schedule, with broad-spectrum vaccinations to help the US economy recover.
At the same time, investors still keep an eye on US economic stimulus measures. The US House of Representatives voted in favor of the $ 1.9 trillion stimulus package over the weekend. And it is now in the Senate hearing. Before sending it to President Joe Biden signed the endorsement into law.
U.S. House Speaker Nancy Pelosi expects the approval of the stimulus process to be completed by March 15, the day the unemployment measures affected by COVID-19 expire.
Investors had their eyes on the Federal Reserve’s monetary policy meeting on March 16-17, after Fed Chairman Jerome Powell said in a half-year statement to Congress last week: The Fed will continue its monetary easing policy. While signaling to freeze interest rates near 0% for the next 3 years