Gold hits over 1-week high as dollar dips


Gold prices touched a more than one-week high on Monday, as an easing dollar supported greenback-priced bullion, although rising U.S. Treasury yields capped gains.

FUNDAMENTALS


Spot gold rose 0.3% to $1,850.39 per ounce, by 0039 GMT, their highest since May 12. U.S. gold futures GCv1 also gained 0.3% to $1,847.90.

The dollar began the week on the back foot, following its first weekly loss in nearly two months, as investors cut bets on more dollar gains from rising U.S. rates and hoped that easing lockdowns in China can aid global growth.

A weaker dollar makes bullion more attractive for overseas buyers.

However, benchmark U.S. 10-year Treasury yields firmed, limiting demand for zero-yield gold. US/

St. Louis Federal Reserve Bank President James Bullard reiterated his view last week that the U.S. central bank ought to raise interest rates to 3.5% this year to get high inflation more quickly under control. (Full Story)

Bullion, seen as a safe store of value during times of economic crises, tends to become less attractive to investors when U.S. interest rates are raised because it yields no interest. (Full Story)

Asian stocks faced an uncertain start on Monday as

inflation fears and the prospect of rising interest rates dogged the global economic outlook. MKTS/GLOB

SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.69% to 1,063.43 tonnes on Friday from 1,056.18 tonnes on Thursday.

Spot silver was up 0.7% at $21.90 per ounce, platinum firmed 0.3% to $958.43, and palladium climbed 0.8% to $1,979.27.



Source link