Gold prices hover near ,900/ounce on subdued US dollar, bond yields

Gold prices hover near $1,900/ounce on subdued US dollar, bond yields



(Reuters) – hovered near the key level of $1,900 an ounce on Tuesday, supported by a weaker dollar and lower bond yields, while investors awaited U.S. data later this week to gauge inflationary pressure.


FUNDAMENTALS





* Spot gold was steady at $1,899.94 per ounce, as of 0053 GMT.


* U.S. gold futures edged 0.2% higher to $1,902.80 per ounce.


* The dollar index, which measures the greenback against a basket of major currencies, was flat at 90.003, well below a three-week high of 90.627 hit last week. [USD/]


* The benchmark 10-year yield was pinned near more than one-week low, reducing the opportunity cost of holding non-interest bearing gold. [US/]


* Market participants’ focus this week will be on the U.S. consumer price index report that is expected to shed more light on the Federal Reserve’s near-term policy decision.


* Some investors view gold as a hedge against higher inflation that could follow stimulus measures.


* Japan’s economy shrank at a slower-than-initially reported pace in the first quarter, on smaller cuts to plant and equipment spending, but the pandemic still dealt a huge blow to overall demand.


* British retailers reported a big boost in sales in May, after lockdown measures ended the month before and a relaxation of restrictions on hospitality drew more shoppers into town centres, industry data showed on Tuesday.


* A gauge of global equity closed at a record high on Monday. [MKTS/GLOB]


* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.6% to 1,037.33 tonnes on Monday from 1,043.16 tonnes on Friday. [GOL/ETF]


* Silver rose 0.1% to $27.89 per ounce, palladium gained 0.1% to $2,837.76, while platinum edged 0.1% higher to $1,174.02.


DATA/EVENTS (GMT)


0600 Germany Industrial Output MM April


0900 EU GDP Revised QQ, YY Q1


1230 US Trade April


 


(Reporting by Brijesh Patel in Bengaluru; Editing by Ramakrishnan M.)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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