Gold longs are unable to shake off their misery yet, with the yellow metal suffering its sixth setback in seven days after futures briefly broke below the key $1,700 support on Wednesday.
The Japanese yen hit a seven-month low on the dollar on Thursday as hopes that vaccine distribution and more government stimulus will drive the U.S. economy into a solid rebound lifted the greenback and benchmark Treasury yields.
The Nasdaq fell Wednesday, as concerns over “stretched” valuations in big tech were exacerbated by a renewed climb in U.S. interest rates even as data pointed to a wobble in the labor market.
The safe-haven U.S. dollar remained broadly weaker on Wednesday as Treasury yields continued to retreat, restoring some calm to global markets and reigniting demand for riskier assets.
Oil prices rose on Wednesday, boosted by demand hopes on progress made in U.S. vaccine rollouts, while uncertainty over how much supply OPEC+ will restore to the market at its Thursday meeting and a big build in U.S. crude stocks capped gains.
Gold inched down on Wednesday morning in Asia, with U.S. Treasury yields continued their fall and put pressure on the yellow metal.