Gold futures scored back-to-back gains Thursday, sending prices to their highest finish in more than three months.
“The dollar is weaker, Treasury yields are down and stocks are lower,” said Michael Armbruster, principal and co-founder at Altavest. “That is a nice trifecta for gold.”
April gold GCJ7, +0.73% rose $8.50, or 0.7%, to settle at $1,241.60 an ounce after tacking on 0.6% on Wednesday. The settlement was the highest since Nov. 10, according to FactSet data.
The yellow metal’s gain on Wednesday snapped what had been a four-session fall stoked by expectations that the dollar would rise on heightened expectations for U.S. interest-rate hikes, following two days of testimony this week on Capitol Hill from Federal Reserve Chairwoman Janet Yellen.
Some analysts, however, believe that gold’s modest near-term gains look vulnerable as U.S. equities remained near record highs amid optimism for the Trump administration’s plan to deliver tax reforms.
“The move [higher for gold] may have reflected profit-taking after markets exhausted the week’s Fed policy-defining news flow,” said Ilya Spivak, strategist for Daily FX. “Jitters ahead of a coming G-20 foreign ministers’ meeting—the first to be attended by members of the Trump administration—may have encouraged a cautious disposition.”