Gold was up on Thursday morning in Asia, as investors await U.S. economic data and a dollar near three-week lows boosted the appeal of the safe-haven yellow metal.
Gold futures edged up 0.14% to $1,738.80 by 11:59 PM ET (3:59 AM GMT). The dollar, which usually moves inversely to gold, hovered near a three-week low on Thursday and U.S. bond yields levelled off following March’s surge.
The U.S. economic recovery from COVID-19 accelerated into the spring thanks to rising consumer sentiment, the U.S. Federal Reserve said. Fed Chairman Jerome Powell added that the country is on track for faster growth and hiring in the coming months.
Powell also re-affirmed the central bank’s continued support for the economic recovery and said that a pullback in asset purchases would happen “well before” the central bank considers raising interest rates, at an Economic Club of Washington event on Wednesday.
Meanwhile, across the Atlantic, the eurozone economy is now relying on the “two crutches” of monetary and fiscal stimulus, which cannot be removed until the economy recovers completely, according to European Central Bank President Christine Lagarde.
On the COVID-19 vaccine front, the U.S. Centers for Disease Control and Prevention (CDC)’s immunization panel called for more data before determining whether to resume using Johnson & Johnson’s (NYSE:JNJ) vaccine.
A review Wednesday to review six cases of rare blood clots in women who received the vaccine ended without a vote and in effect extended the halt on the vaccine’s use. The Food and Drug Administration (FDA) will review the CDC’s analysis once it is released and determine the next steps.
Other precious metals also continued the upward trend. Silver rose 0.5%, palladium was up 0.3% and platinum gained 0.5%.