Gold: Gold hovers near 2-week low as dollar strength weighs


April 25: Gold prices edged lower on Monday near their lowest level in two weeks touched in the previous session as an elevated U.S. dollar continued to pressure demand for greenback-priced bullion.

FUNDAMENTALS


* Spot gold was down 0.1% at $1,928.08 per ounce, as of 0033 GMT. U.S. gold futures were down 0.2% at $1,930.10.

* The dollar steadied near its highest in two years scaled in the previous session, making gold less attractive for buyers holding other currencies.

* Gold prices fell to their lowest since April 7 on Friday and marked a weekly decline as signs of faster policy tightening by the U.S. Federal Reserve lifted Treasury yields and the dollar.

* U.S. 10-year Treasury yields, however, were off recent highs on Monday, limiting losses in zero-yield gold.

* With expectations for a half-percentage point rate hike at the Federal Reserve’s May meeting now locked in, traders on Friday piled into bets that the central bank will go even bigger in subsequent months.

* Gold is highly sensitive to rising U.S. short-term interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion. It is also, however, seen as a safe store of value during economic and political crises.

* Ukraine will ask U.S. Secretary of State Antony Blinken and Defence Secretary Lloyd Austin for more powerful weapons during an expected visit by the officials to Kyiv on Sunday as the Russian invasion enters its third month.

* Battered U.S. stocks are facing a potentially painful stretch in the weeks ahead, as a hawkish Fed, rising bond yields, geopolitical uncertainty and the corporate earnings season fuel investor unease.

* Spot silver dipped 0.2% to $24.10 per ounce, platinum eased 0.2% to $928.77, and palladium fell 2.3% to $2,319.78.

DATA/EVENTS (GMT, April)


0800 Germany Ifo Business Climate New

0800 Germany Ifo Curr Conditions New

0800 Germany Ifo Expectations New



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