Gold hovers near 7-week high on subdued US dollar, yields
- A gauge of stock prices across the world fell on Tuesday and oil prices also slipped as concern lingered over rising global COVID-19 cases and their effect on the global economic rebound.
Gold prices edged higher on Wednesday, hovering near a seven-week peak hit earlier this week, as a weaker dollar and a retreat in US Treasury yields lifted demand for the safe-haven metal.
FUNDAMENTALS
Spot gold was up 0.1% at $1,779.55 per ounce by 0110 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday.
US gold futures edged 0.1% higher to $1,779.60 per ounce.
The dollar index fell 0.1% against its rivals after touching a near seven-week low in the previous session, making gold less expensive for other currency holders.
Benchmark 10-year US Treasury yields dropped below 1.6%, reducing the opportunity cost of holding non-yielding bullion.
New Zealand's consumer price index (CPI) rose by faster than expected in the first quarter as transport and housing prices jumped, according to data released by Statistics New Zealand.
The Bank of Japan is set to predict for the first time that inflation will remain well short of its 2% target beyond Governor Haruhiko Kuroda's term through early 2023, say sources familiar with its thinking.
Market participants now await the European Central Bank meeting on Thursday for further clarity about stimulus plans for the bloc. The US Federal Reserve policy meeting is due next week.
Gold is seen as a hedge against inflation that could follow stimulus measures, but higher Treasury yields have dulled some of the appeal of the non-yielding commodity this year.
A gauge of stock prices across the world fell on Tuesday and oil prices also slipped as concern lingered over rising global COVID-19 cases and their effect on the global economic rebound.
Silver eased 0.2% to $25.83 per ounce. Palladium rose 0.6% to $2,778.17. Platinum fell 0.2% to $1,185.47.
Comments
Comments are closed for this article.