Gold Looks to Close its Third Weekly Gain

Gold Looks to Close its Third Weekly Gain

Gold is looking to close the week with its third consecutive gain as the US Dollar continues to weaken.

On top of this, the US Treasury yield is continuously following a downward trajectory. The United States’ fiscal policy might undergo some paradigm shift.

Spot gold is currently trading at $1,781.69 per ounce after hitting close to the round figure of $1,800.00 per ounce during the session.

The bullion’s futures contract added 0.17% to $1,785.05 per ounce, nearing the psychological resistance of $1,800.00.

In a recent speech, President Joe Biden is considering doubling the country’s capital gains to almost 40%.

This will affect citizens earning more than $1 million annually to gain the needed funds for crosscutting issues.

Some of these include a $1 trillion budget allocation for childcare, pre-school education, and paid leave compensation for workers.

With the recent update, the market is looking for a catalyst in the Federal Reserve’s policy decision to be handed in the following week.

Meanwhile, the US weekly jobless claims capped further gains for gold futures as bettering economic outlook undermines appetite for safe-haven assets.

Initial jobless claims for the week ending April 17 bottomed at a pandemic0low of 547,000, falling below the 610,000 additions forecasted by analysts.

Commodity strategists highlighted that while the yellow metal has momentum since its record peak notched in August last year, some indicators still provide hope.

One of these is the increased buying appetite from some of the world’s biggest consumer markets namely India and China.

Last month, Indian gold imports from Switzerland hiked to a multi-year high as buyers cheer over the dip in prices.

 

How are Other Metals Faring?

Other metals are showing different trading trajectories. The trajectory of supply and demand for each is different from one another.

Palladium hits record high during Thursday’s trading after closing near $3,000.00 for the first time in New York COMEX.

The metal started gaining momentum on April 13. This comes after hitting a resistance level of $2,700.00 and recorded bullish candles ever since then.

The ubiquitous commodity managed to double its price over the last two years as the automobile market continued to boom.

It further gained much-needed leverage during the pandemic when consumers pushed automobile sales despite the economic crisis.

Meanwhile, platinum price maintains its upward climb and neared a record-high of $2,896.68 during the same session.

The metal managed to hike as demand continues to outpace supply in the market.

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