Multiple factors limited price rebound on Thursday
Support the dollar, Treasury yields rebound on the commodity prices
Powell, chairman of the federal reserve bearish traders before speech seems inclined to wait and see
On Thursday, gold prices remain under pressure, but the lack of any strong follow up selling. Gold prices is hovering near $1735 area, the breakthrough of overnight volatility high.
Gold plate decline since the $1745-46 supply area stagnation, Wednesday success find some support in the $1730 area. The fed's march meeting minutes to confirm the bank was in no hurry to raise interest rates. This is to provide some support for gold without yields a key factor.
However, investors seem to believe that the American economy recovered relatively quickly from outbreak, will force the fed to raise interest rates earlier than expected. Amazing coronavirus vaccination rate and the President of the United States, Joe Biden (Joe Biden) infrastructure spending plan, effectively support the optimistic outlook for the U.S. economy is still.
Inflation again trading has fuelled speculation that rising inflation to the United States, and the fed will remain in a longer time to doubt of ultra-low interest rates. Which in turn pushes up Treasury yields and helped to boost the demand for the dollar, and suppress the dollar-denominated commodities of any significant rise.
The potential of financial market bullish sentiment further depress safe-haven gold. Although there are multiple negative news, but the decline is limited, at least for now, because investors in Powell, chairman of the federal reserve in a speech late Thursday before don't want to take big positions.
So in confirmation since the end of the rally since the multi-month lows recently and have further to fall before the prudent approach is to wait for some strong follow up selling. The ShuNiuDian $1720 area is still a key, if broken will lay the ground for restart declines.