Gold Steadies as Traders Weigh Dollar Rise Against Stimulus Bets
- Elevated U.S. bond yields have boosted dollar, hurting gold
- Biden calls for trillions of dollars in further fiscal support
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Gold was little changed as traders weighed elevated U.S. Treasury yields and a stronger dollar against expectations for further economic stimulus and an eventual rise in inflation.
Bullion faces increased pricing pressure as the dollar headed for a third straight gain and Treasury yields rose. Still, relatively low interest rates, a record amount of fiscal relief that’s likely to expand and high materials costs are also having an influence. Some analysts see such factors as signaling a drop in real interest rates and helping gold, which is often used as an inflation hedge.