ANL 10.60 Increased By ▲ 0.19 (1.83%)
ASC 9.32 Increased By ▲ 0.11 (1.19%)
ASL 11.90 Increased By ▲ 0.13 (1.1%)
AVN 80.66 Increased By ▲ 4.61 (6.06%)
BOP 5.55 Increased By ▲ 0.06 (1.09%)
CNERGY 5.50 Increased By ▲ 0.13 (2.42%)
FFL 6.75 Increased By ▲ 0.04 (0.6%)
FNEL 6.05 Increased By ▲ 0.12 (2.02%)
GGGL 11.43 Increased By ▲ 0.13 (1.15%)
GGL 16.88 Increased By ▲ 0.38 (2.3%)
GTECH 8.81 Increased By ▲ 0.28 (3.28%)
HUMNL 7.27 Increased By ▲ 0.05 (0.69%)
KEL 3.12 Increased By ▲ 0.25 (8.71%)
KOSM 3.15 Increased By ▲ 0.05 (1.61%)
MLCF 26.90 Increased By ▲ 0.91 (3.5%)
PACE 3.10 Decreased By ▼ -0.05 (-1.59%)
PIBTL 6.10 Increased By ▲ 0.06 (0.99%)
PRL 18.50 Increased By ▲ 0.35 (1.93%)
PTC 7.11 Increased By ▲ 0.10 (1.43%)
SILK 1.19 Increased By ▲ 0.02 (1.71%)
SNGP 34.05 Increased By ▲ 0.80 (2.41%)
TELE 11.40 Increased By ▲ 0.28 (2.52%)
TPL 9.54 Increased By ▲ 0.32 (3.47%)
TPLP 20.71 Increased By ▲ 0.54 (2.68%)
TREET 30.20 Increased By ▲ 1.50 (5.23%)
TRG 78.30 Increased By ▲ 2.55 (3.37%)
UNITY 20.55 Increased By ▲ 0.27 (1.33%)
WAVES 12.85 Increased By ▲ 0.25 (1.98%)
WTL 1.45 No Change ▼ 0.00 (0%)
YOUW 4.94 Increased By ▲ 0.19 (4%)
BR100 4,160 Increased By 76.4 (1.87%)
BR30 15,387 Increased By 402.4 (2.69%)
KSE100 41,879 Increased By 826.8 (2.01%)
KSE30 16,009 Increased By 346.4 (2.21%)
Markets

Gold prices slip as yields gain on higher inflation

  • Hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts in the week to April 6, the US Commodity Futures Trading Commission (CFTC) said on Friday.
12 Apr, 2021

Gold prices fell on Monday as data showing very strong readings for US inflation and a faster economic rebound bolstered Treasury yields, weighing on the safe-haven metal.

FUNDAMENTALS

Spot gold fell 0.2% to $1,740.57 per ounce by 0118 GMT. US gold futures were steady at $1,743.70 per ounce.

US Treasury yields climbed on Friday after higher-than-expected March producer price data showed inflation had risen, echoing other reports that said the world's largest economy was on a steady road to recovery from the pandemic.

Producer prices in the United States rose more than anticipated in March, resulting in the highest annual rise in 9-1/2 years and signalling the start of higher inflation as the economy reopens amid strengthened public health and substantial government assistance.

Higher bond yields increases the opportunity cost of holding bullion, which pays no return.

However, according to Federal Reserve Chair Jerome Powell, the US economy is at an "inflection point," with hopes that inflation and hiring will accelerate in the coming months, but there are dangers if a hasty reopening leads to a continuing uptick in coronavirus cases.

Asian stocks traded cautiously on Monday as investors await to see whether US earnings will support sky-high valuations, while bond markets will be checked by what could be very strong readings for US inflation and retail sales this week.

Hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts in the week to April 6, the US Commodity Futures Trading Commission (CFTC) said on Friday.

Silver fell 0.2% to $25.19 and palladium was down 0.3% at $2,631.96 . Platinum stood steady at $1,197.54.

Comments

Comments are closed.