Gold rose on Thursday as a slight pullback in the dollar and U.S. bond yields helped bullion regain some its appeal as an inflation hedge against the backdrop of President Joe Biden’s multi-trillion-dollar infrastructure investment plan.
Spot gold rose 0.4% to $1,713.10 per ounce, after touching its lowest since March 8 at $1,677.61 on Wednesday. Most markets will be closed for Good Friday on April 2. U.S. gold futures were steady at $1,715.70 per ounce.
“The forces (dollar and U.S. yields) that captured gold prices lower earlier this week have tapered and we’re seeing some buying on dips as well,” said Xiao Fu, head of commodities markets strategy at Bank of China International.