Gold prices retreated from a two-month high on Tuesday as yields rose and the dollar strengthened amid optimism that a global economic recovery is gathering pace, thanks to successful vaccine rollouts in much of the developed world.
Spot gold dipped 0.6 percent to $1,782.44 per ounce, after having hit its highest since Feb. 25 at $1,797.75 on Monday. U.S. gold futures were up 0.6 percent at $1,781.80.
The U.S. dollar gained ground against its major rivals after Federal Reserve Chairman Jerome Powell said that U.S. economic outlook has clearly brightened amid faster vaccination rates and fiscal stimulus, but cautioned that the economy is “not out of the woods yet.”
“While the recovery is gathering strength, it has been slower for those in lower-paid jobs,” Powell said at a National Community Reinvestment Coalition event on Monday.
The central bank is focused on these longstanding disparities as they weigh on the productive capacity of the economy, he added.
New York Fed President John Williams noted that current conditions are “not nearly enough” for a shift in the monetary policy stance.
Investors await upcoming economic data to assess the strength of the rebound in the economy. Today’s U.S. economic docket features trade data and factory orders.
Other data that will be released in the week include ADP private sector payrolls on Wednesday, weekly jobless data on Thursday and nonfarm payrolls data on Friday.
Economists expect that nonfarm payrolls grew by 978,000 jobs in April, up from March’s gain of 916,000 jobs.
The material has been provided by InstaForex Company – www.instaforex.com