Gold gains as dollar, treasury yields slip; focus on US inflation data

By Ashitha Shivaprasad

(Reuters) – rose on Monday following a pullback in the dollar and U.S. Treasury yields, while investor focus shifted to U.S. inflation data for clues on the Federal Reserve’s rate hike plan.

Spot gold rose 0.5% to $1,783.62 per ounce by 10:02 ET (1402 GMT). U.S. gold futures edged 0.5% higher to $1,799.60.

The dollar index fell 0.4%, making gold more appealing to other currency holders. U.S. Treasury yields also slipped. [USD/] [US/]

Gold is considered a safe investment amid political tensions and recession worries, but high interest rates tend to dim the appeal for bullion, which pays no interest.

“The market seems to have priced in the shock from the jobs number … however, gold will have a tough time if the Fed is seeing tightening much further,” said Edward Moya, senior analyst with OANDA.

“Foreign investors are going to be looking for alternative investments and gold is an option with the ongoing situation in Taiwan and Ukraine.”

Gold fell on Friday after robust U.S. job growth reinforced expectations that the Fed will continue to raise rates in the next few meetings to slow inflation. [nL4N2ZH397

With gold’s gains capped by the potential of more aggressive hikes, the strength of technical support around $1,700 will be tested when the Fed’s next decision is announced, Kinesis Money analyst Rupert Rowling said in a note.

The U.S. consumer price index report due on Wednesday could offer clues on the Fed’s next move.

Spot silver rose 2.7% to $20.41 per ounce, while platinum was up 0.6% at $937.86.

Palladium jumped 5.3% to $2,238.12.

China’s palladium autocatalyst demand was likely to shrink slightly this year, mainly due to lockdowns in Shanghai in the second quarter and the growing market share of “new energy” vehicles, Heraeus said in a note.


(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shounak Dasgupta)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Recent Posts

Scan to Download
ios&Android APP

Open trading account and start trading!

Join our happy customers