Earlier in the day, the New York Times reported that President Joe Biden would announce a 6 trillion USD budget for 2022 to ensure investments in major infrastructure, education, and healthcare projects. If this gets through the divided Congress, it will take federal spending to its highest levels since World War II.
On Thursday, the US initial jobless claims dropped to a post-pandemic low of 406,000 as it looks like the labor market is slowly getting back to normal.
Rising US yields undermined precious metals, with both silver and gold dropping today. However, the PMs have been rising nonstop this month, so they were due for a correction anyway.
Additionally, the USDJPY pair seems to be gaining some bullish momentum, which could be negative for gold and silver as well. The greenback rose to its highest in six weeks against the yen and is about to test the important 110 handle.
Later in the session, traders will surely watch the US PCE data. Inflation measured by these indices is also expected to rise - the YoY change should jump to 2.9% from 1.8% previously. The Fed's target is at 2.0%.