Gold prices were little changed on Wednesday as investors digested strong factory activity data from China and awaited details of a $4tn (?3tn) infrastructure spending plan as well as a major speech by U.S. President Joe Biden later in the day.
Both spot gold and U.S. gold futures were little changed at $1,685.99 per ounce and $1,686.05, respectively.
China’s factory activity expanded at a faster-than-expected pace in March, official data showed, but analysts said the bounce is not sustainable.
The dollar headed for its best month since November 16 while Treasury yields are on pace for their biggest quarterly rise in 5 years, buoyed by hopes of stronger growth and inflation.
The International Monetary Fund will raise its forecast for global economic growth in 2021 and 2022 when it releases its updated economic forecast next week, IMF Managing Director Kristalina Georgieva has said.
Investors eagerly await details of Biden’s infrastructure plan to be announced in a speech later today in Pittsburgh.
The Washington Post reports the first part of Biden’s infrastructure package could cost $2.25 trillion, with the focus on physical infrastructure, housing, clean energy and manufacturing, among others.