Gold climbed to its highest level in seven weeks as yields on the dollar and Treasuries continued to narrow their first-quarter gains.
Us bonds rose on Monday, driving yields further down from their highs reached at the end of March, easing pressure on gold. The positive outlook weighed on the dollar, further boosting gold prices.
Gold has broken through its recent narrow trading range, rising above its 50-day moving average as 10-year Treasury yields and the dollar fall. While strong data from the United States and China last week suggest that the economy is recovering from the epidemic, which may put pressure on demand for safe-haven assets, the Fed's dovish monetary policy stance supports gold.
"these breakthroughs are likely to force trend-following money managers back into gold," said Ole Hansen, head of commodity strategy at Saxo Bank Aamp S. He said traders should focus on technical resistance levels of $1785 and $1818 an ounce.
Reports say China has approved banks to import large amounts of gold to meet domestic demand.
Spot gold rose 0.6 per cent to $1786.81 an ounce at 10 per cent London time, the highest since Feb. 25. Both silver and platinum rose. The Bloomberg dollar spot index fell 0.4%, extending a two-week decline.
