PRECIOUS-Gold firms for sixth day propped up by falling bond yields

  • 7/7/2021
  • 00:00
  • 6
  • 0
  • 0
news-picture

* Fed minutes due at 1800 GMT * U.S. 10-year Treasury yields at over four-month low (Recasts, add comment, updates prices) July 7 (Reuters) - Gold extended gains into a sixth session on Wednesday, hovering near a more than two-week peak hit the previous session, helped by faltering U.S. Treasury yields, while the market awaited the minutes from the Federait’s tl Reserve’s June meeting. Spot gold rose 0.4% to $1,805.36 per ounce by 10:05 a.m. EDT (1405 GMT), having hit its highest since June 17 at $1,814.78 on Tuesday. U.S. gold futures gained 0.7% to $1,807.20 per ounce. “On a near-term basis gold traders seem to be focused on the potential for the Fed to tighten monetary policy... That’s going to be bearish just because it will take some liquidity out of the marketplace that has been supporting the gold market,” said Jim Wyckoff, senior analyst with Kitco Metals. Traders will be listening out for fresh clues on the timing of any monetary policy changes, Wyckoff added. The minutes from the Fed’s latest meeting, due at 1800 GMT, are in focus after a surprise hawkish tilt by the U.S. central bank last month caused gold to slump 7% in June. “The FOMC minutes could have a major say on whether spot gold can hold on to the $1,800 handle,” said Han Tan, chief market analyst at Exinity Group. “Fresh hawkish cues could see spot gold moving back below its 100-day simple moving average (SMA) around $1,790.” Meanwhile, benchmark 10-year Treasury yields hit their lowest in more than four months. Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-interest bearing bullion. Elsewhere, silver firmed 0.4% to $26.23 per ounce, platinum eased 0.1% to $1,090.32, and palladium climbed 1.9% to $2,845.06. (Reporting by Eileen Soreng in Bengaluru; editing by Barbara Lewis) Our Standards: The Thomson Reuters Trust Principles.

مشاركة :