Gold: Gold regains some ground as bond yields ease


April 26: Gold on Tuesday firmed above a near four-week low hit in the previous session, as lower U.S. Treasury yields lifted prices and a slight retreat in the dollar offered support.

FUNDAMENTALS


* Spot gold was up 0.2% at $1,902.31 per ounce, as of 0033 GMT. U.S. gold futures were up 0.3% at $1,902.30.

* U.S. 10-year Treasury yields eased on Tuesday, increasing the appeal of zero-yield gold.

* The dollar edged of its highest level in two years scaled in the previous session, boosting greenback-priced gold.

* In the previous session, worries over impending interest rate hikes by the U.S. Federal Reserve pressured gold prices to their lowest level since March 29.

* While 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 seen as a safe store of value during economic and political crises.

* Russia told the world not to underestimate the considerable risks of nuclear war that it said it wanted to reduce and warned that conventional Western weapons were legitimate targets in Ukraine, where battles raged in the east.

* Spot silver gained 0.5% to $23.73 per ounce, platinum rose 0.6% to $926.50, and palladium advanced 1.2% to $2,170.42.

* Palladium prices fell nearly 13% on Monday as China’s COVID-19-led lockdowns soured the demand outlook for the autocatalyst, used in vehicle exhausts to curb emissions.

DATA/EVENTS (GMT, April)


1230 US Durable Goods March

1400 US Consumer Confidence April

1400 US New Home Sales-Units March



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