Gold hits near 2-week low as US bond yields, dollar firm

June 1: Gold prices hit a near two-week low on Wednesday, as rising Treasury yields and a strengthening U.S. dollar continued to sap demand for greenback-priced bullion.

FUNDAMENTALS


* Spot gold was down 0.2% at $1,834.09 per ounce, as of 0044 GMT, its lowest since May 20. U.S. gold futures fell 0.6% to $1,838.20.

* The dollar index steadied after gaining on Tuesday, making bullion more expensive for buyers holding other currencies.

* Benchmark U.S. 10-year Treasury yields rose, lowering the appeal of zero-yield gold.

* Gold prices fell about 1% in the previous session, and recorded a second consecutive month of declines in May.

* U.S. President Joe Biden on Tuesday met with Federal Reserve Chair Jerome Powell to discuss historic inflation that’s draining American wallets, even as he assured the central bank chief he would have freedom from political interference.

* Bullion is considered a hedge against inflation, but the Fed hiking short-term U.S. interest rates to fight rising costs raises the opportunity cost of holding it, as gold itself yields no interest.

* SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 1,068.36 tonnes on Tuesday from 1,069.81 tonnes on Friday.

* Spot silver dipped 0.1% to $21.2 per ounce, and platinum fell 0.1% to $963.48, while palladium firmed 0.1% to $2,000.79.

DATA/EVENTS (GMT)


0130 Australia Real GDP QQ, YY SA Q1

0145 China Caixin Mfg PMI Final May

0600 UK Nationwide house price MM, YY May

0750 France S&P Global Mfg PMI May

0755 Germany S&P Global/BME Mfg PMI May

0800 EU S&P Global Mfg Final PMI May

0830 UK S&P GLBL/CIPS Mfg PMI Fnl May

0900 EU Unemployment Rate April

1345 US S&P Global Mfg PMI Final May

1400 US ISM Manufacturing PMI May

1800 US Federal Reserve issues the Beige Book of economic condition

Source link

Recent Posts

Scan to Download
ios&Android APP

Open trading account and start trading!

Join our happy customers