ANL 10.96 Decreased By ▼ -0.16 (-1.44%)
ASC 10.05 Increased By ▲ 0.07 (0.7%)
ASL 12.05 Increased By ▲ 0.20 (1.69%)
AVN 71.10 Decreased By ▼ -0.14 (-0.2%)
BOP 6.00 Increased By ▲ 0.05 (0.84%)
CNERGY 5.27 No Change ▼ 0.00 (0%)
FFL 7.15 Increased By ▲ 0.45 (6.72%)
FNEL 6.15 Increased By ▲ 0.05 (0.82%)
GGGL 11.75 Decreased By ▼ -0.11 (-0.93%)
GGL 15.85 Decreased By ▼ -0.07 (-0.44%)
GTECH 9.30 Decreased By ▼ -0.05 (-0.53%)
HUMNL 6.61 Increased By ▲ 0.05 (0.76%)
KEL 2.55 Decreased By ▼ -0.03 (-1.16%)
KOSM 3.06 No Change ▼ 0.00 (0%)
MLCF 28.60 Decreased By ▼ -0.10 (-0.35%)
PACE 2.98 Decreased By ▼ -0.01 (-0.33%)
PIBTL 6.04 Decreased By ▼ -0.05 (-0.82%)
PRL 15.66 Increased By ▲ 0.61 (4.05%)
PTC 7.30 Increased By ▲ 0.13 (1.81%)
SILK 1.31 Increased By ▲ 0.07 (5.65%)
SNGP 26.50 Increased By ▲ 0.35 (1.34%)
TELE 10.82 Decreased By ▼ -0.13 (-1.19%)
TPL 9.03 Decreased By ▼ -0.02 (-0.22%)
TPLP 15.85 Decreased By ▼ -0.07 (-0.44%)
TREET 29.90 No Change ▼ 0.00 (0%)
TRG 75.70 Decreased By ▼ -1.30 (-1.69%)
UNITY 22.42 Decreased By ▼ -0.03 (-0.13%)
WAVES 13.50 Increased By ▲ 0.55 (4.25%)
WTL 1.62 Increased By ▲ 0.07 (4.52%)
YOUW 5.02 Decreased By ▼ -0.02 (-0.4%)
BR100 4,281 Increased By 8.1 (0.19%)
BR30 14,910 Increased By 12.9 (0.09%)
KSE100 43,101 Increased By 117.3 (0.27%)
KSE30 16,367 Increased By 17 (0.1%)
Markets

Gold slips on robust U.S. data, rising yields

  • U.S. Treasury yields rose, translating into increased opportunity cost of holding non-yielding gold, on reports that President Joe Biden will announce on Friday a $6 trillion budget for 2022.
27 May, 2021

Gold retreated on Thursday, weighed down by upbeat U.S. data that showed a recovery in the world's largest economy was on track, while rising U.S. Treasury yields further added pressure.

Spot gold was 0.3pc lower at $1,890.91 per ounce by 12:20 p.m. EDT (1620 GMT), having slipped back below the key psychological $1,900 level. U.S. gold futures fell 0.5pc to $1,894.80.

"The U.S. economy is on a solid trajectory for growth and the inflation argument has ebbed a bit because the Federal Reserve has had some success in convincing the marketplace that it is indeed just going to be transitory," said Kitco Metals senior analyst Jim Wyckoff.

"So it's just a pause from the recent uptrends. However, we shouldn't be surprised to see some bargain hunters step in to buy the dip in prices later in the session."

Data showed U.S. new jobless claims dropped more than expected, while economic growth accelerated in the first quarter.

U.S. Treasury yields rose, translating into increased opportunity cost of holding non-yielding gold, on reports that President Joe Biden will announce on Friday a $6 trillion budget for 2022.

Investors await the monthly U.S. personal consumption report on Friday.

"We don't have as many people coming in to buy gold right now because it has run for two months straight, statistically it is overbought," said Michael Matousek, head trader at U.S. Global Investors.

"But if inflation keeps rearing its head, gold is going to be overbought even more, cause people are going to start jumping in saying they need to own it."

On the physical front, gold imports into top consumer China from Hong Kong and Switzerland surged in April.

Palladium rose 2.4pc to $2,811.59 per ounce, while silver was flat at $27.69 and platinum fell 1.7pc, to $1,170.80.

Top producer Nornickel said a deficit in the palladium market could widen in 2021.

Comments

Comments are closed.