Dollar Extends Slide Against Other Major Currencies
WASHINGTON (dpa-AFX) - The U.S. dollar was weak against most of its rivals on Friday, extending recent weakness, amid a drop in bond yields.
The Federal Reserve Chairman Jerome Powell commented recently that the central bank that the central bank would only begin winding down its asset purchases when it s made substantial progress towards its goals. He also signaled that tapering would happen well before the U.S. central bank starts considering raising interest rates.
According to a report released by the Commerce Department, U.S. housing starts skyrocketed by 19.4% to an annual rate of 1.739 million in March after plunging by 11.3% to a revised rate of 1.457 million in February.
Gold Hovers Near Seven-week High Gold prices hovered near seven-week highs on Friday and were on course to post their best weekly gain in five, as a weaker dollar on the back of falling U.S. Treasury yields lifted the precious metal’s appeal.
Spot gold rose half a percent to 1,772.73 per ounce, while U.S. gold futures were up 0.4 percent at 1,773.60.
The dollar fell against rivals and benchmark U.S. Treasury yields hovered near a one-month low hit in the previous session despite strong economic data from the United States and China.
Earlier this week, Federal Reserve Chairman Jerome Powell reiterated his dovish stance on monetary policy and emphasized that any increase in inflation should be transitory.
Gold hits seven-week high on weaker bond yields and dollar
Yvonne Yue Li, Bloomberg News
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Gold climbed to the highest since February amid a retreat in bond yields and a report that top buyer China may import more of the metal.
After weeks trading in a narrow range, gold has advanced as Treasuries and the dollar head for weekly losses. Prices extended gains on Friday after Reuters reported that China has given banks permission to import a large amount of bullion to meet domestic demand, citing people familiar with the matter. About 150 tons will likely be shipped in the coming months, it said.
Gold Futures Settle At Near 8-week High
WASHINGTON (dpa-AFX) - Gold futures moved higher on Friday and settled at near 8-week high, gaining in strength thanks to another drop in bond yields and a weaker dollar.
The dollar lost ground against most of its rivals and yields on long term U.S. Treasury Notes hovered around one-month lows, weighed down by dovish comments from Fed officials.
Earlier in the week, Federal Reserve Chairman Jerome Powell reiterated his dovish stance on monetary policy and emphasized that any increase in inflation should be transitory. He also said the central bank will reduce its bond purchases before it commits to an interest rate increase.
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