Euro Jumps to 4-month High against Dollar.. Gold Prices Fall as Treasury Yields Climb

The euro jumped to a four-month high against the dollar on Thursday to 1.08, after European bond yields rose on a German proposal to create a 500 billion euro infrastructure fund and revamp borrowing rules.

The U.S. dollar, meanwhile, fell to a near four-month low after the Trump administration granted a one-month exemption from auto tariffs on Canada and Mexico, showing once again how quickly the trade landscape can change.

Gold Prices

Gold prices fell during trading on Thursday, March 6, due to the rise in US Treasury yields and profit-taking, while investors focused on the US jobs data expected to be released on Friday, to gain insights on the Federal Reserve’s monetary policy in the coming period.

Spot gold prices fell by 0.1% to $2,915.83 per ounce at 01:49 p.m. ET (1849 GMT), after rising during the past three sessions.

US gold futures were not significantly changed at $2,926.6 at the time of settlement, according to Reuters.

Jim Wyckoff, senior market analyst at Kitco Metals, said: “We are seeing only some slight profit-taking pressure from the recent gains, and the fundamentals remain bullish... Another thing that is putting some slight pressure on the gold market is the rise in bond yields.”

The yield on the 10-year US Treasury note hit its highest level in more than a week, reducing the appeal of non-yielding gold.

Gold, a safe haven, has risen more than 10% since the start of the year amid geopolitical uncertainty, hitting a high of $2,956.15 on February 24.