(Kitco News) Gold is back on investors' radar as prices look to end the week on a strong technical note despite another spike in bond yields.
After trading near three-week highs following the Federal Reserve's dovish statement, gold managed to ignore the 10-year U.S. Treasury yield rising to its 14-month high of 1.75% on Friday. At the time of writing, April Comex gold futures were trading at $1,742.60, up more than 1% on the week.
The Fed revised up its 2021 GDP and inflation expectations to 6.5% and 2.4%, respectively, but stressed that rates would remain near zero through 2023. Fed Chair Jerome Powell continued to refer to any price spikes as transitory while ignoring rising yields.
On Friday, the Fed threw another curveball at the markets, as it declined to extend a temporary bank leverage rule exemption that expires at the end of the month. The rule excluded U.S. Treasuries and central bank deposits from the "supplementary leverage ratio," which helped to encourage bank lending during the pandemic. In response, yields continued to rise, and the stock market sold off.
In light of this, gold had a decent performance, holding above $1,730 an ounce, while equities and oil were down. Blue Line Futures chief market strategist Phillip Streible told Kitco News.
"Gold as an asset class has moved up on the investors' lists. The precious metal was irrelevant for many a few weeks ago; there was more action in other markets. But now, it moved itself back up. Gold is a player on the field again after being benched for ..
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