Gold falls as US Treasury yields firm; all eyes on Fed rate decision
- Spot gold was down 0.5% at $1,767.76 per ounce by 0131 GMT. US gold futures were down 0.5% at $1,770.00 per ounce.
Gold prices fell on Wednesday, pulled down by firmer US Treasury yields with investors looking out for policy cues from the Federal Reserve's meeting, while palladium eased after hitting a record peak in the previous session.
FUNDAMENTALS
Spot gold was down 0.5% at $1,767.76 per ounce by 0131 GMT. US gold futures were down 0.5% at $1,770.00 per ounce.
Palladium fell 0.6% to $2,924.12 per ounce, after hitting an all-time high of $2,962.50 on Tuesday.
Benchmark US 10-year Treasury yields rose to their highest since April 15, increasing the opportunity cost of holding non-yielding bullion.
- The dollar index rose 0.1% against its rivals, making gold less appealing for other currency holders.
Market participants awaited the US Fed's statement due later in the day, for cues on the central bank's monetary policy.
Japanese retail sales rose at the fastest pace in five months in March as consumer demand recovered from the huge hit it took from the COVID-19 pandemic last year.
- US consumer confidence jumped to a 14-month high in April as increased vaccinations against COVID-19 and additional fiscal stimulus allowed for more services businesses to reopen, boosting demand and hiring by companies.
Senior US officials on Tuesday pledged sustained support for India in helping it deal with the world's worst current surge of COVID-19 infections.
Silver fell 0.9% to $26.00 per ounce. Platinum was down 1% at $1,216.75.
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