Gold Rebounds From Three-week Low As Yields Ease
Gold prices bounced back on Thursday from a three-week low hit in the previous session, as the dollar rally paused and yields steadied in quiet trade ahead of the Easter holidays.
Spot gold jumped 1.8 percent to $1,715.45 per ounce, after having touched its lowest since March 8 at $1,677.61 on Wednesday. U.S. gold futures were marginally higher at $1,715.95 per ounce.
U.S. bond yields eased and the dollar index pulled back after hitting a five-month high on Wednesday, helping bullion regain some of its appeal as an inflation hedge.
After U.S. President Joe Biden unveiled his $2 trillion-plus jobs plan, the market focus has shifted back to inflation.
Biden announced his second multitrillion-dollar legislative proposal in two months in office, including $621 billion to rebuild infrastructure.
The plan would increase the corporate tax rate to 28 percent from 21 percent to pay for the package.
With the final Eurozone manufacturing PMIs coming in strong in March, investors now await U.S reports on weekly jobless claims, manufacturing activity and construction spending for further direction.
The Labor Department is scheduled to release its more closely watched monthly jobs report on Friday, which includes both public and private sector jobs.
Economists currently expect employment to jump by 639,000 jobs in March after an increase of 379,000 jobs in February. The unemployment rate is expected to drop to 6.0 percent from 6.2 percent.