JAKARTA – Gold price rose in late trading Thursday (Friday morning WIB), extending the rally for a second day in a row supported by a decline in the dollar and US bond yields, while downbeat US unemployment data dimmed prospects for economic recovery, adding to the safe-haven metal appeal of gold.
The most active gold contract for June delivery on the COMEX division of the New York Exchange lifted 12.8 dollars, or 0.75 percent, to close at 1,728.4 dollars an ounce, after hitting a session high of 1,731.05 US dollars.
The day before, Wednesday (31/3/2021), gold futures jumped 29.6 US dollars or 1.76 percent to 1,715.60 US dollars, after plunging 28.6 US dollars or 1.67 percent to 1,686 US dollars on Tuesday. (30/3/2021), and slumped 20.10 US dollars or 1.16 percent to 1,712.20 US dollars on Monday (29/3/2021).
“This is an upward correction in a structured bear market,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago, adding that gold could rise to as low as $ 1,740 before yields resume their upward trend to push gold back down.
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The dollar index, which measures the greenback against six major peers, slipped below a key bullish level of 93. The yield on the 10-year US government bond also fell to 1.68 percent from this week’s high of 1.77 percent.
Gold also found additional support when the US Department of Labor reported Thursday that the number of Americans filing new claims for unemployment benefits rose unexpectedly by 61,000 to 719,000 in the week ending March 27, above market estimates.