Gold inched higher in choppy trade on
Monday, as weakness in Treasury yields kept prices above the
$1,800-mark and marginally outweighed pressure stemming from
elevated U.S. dollar levels.
Spot gold was up 0.1% at $1,811.99 per ounce, by 0319
GMT. U.S. gold futures rose 0.6% to $1,812.10.
Bullion prices hit a five-month low of $1,783.50 on Friday,
but recovered to end the session nearly steady.
“Once again, we saw buyers support gold with its break below
$1,800 on Friday, and with U.S. yields continuing to retrace, it
allows the potential for gold to rise over the near term,” City
Index senior market analyst Matt Simpson said.
Benchmark U.S. 10-year Treasury yields fell to their lowest
level in a month on Friday, buoying non-yielding bullion.
“But the reality is that managed funds and large speculators
are increasing their short bets against gold, and if we see a
close below $1,800 then it could trigger another bout of
selling,” Simpson said.
The dollar hovered close to recent two-decade highs,
continuing to make greenback-priced gold less attractive for
buyers holding other currencies, after playing a significant
part in bullion’s worst quarterly showing in over a year.
Asian equities started cautiously on Monday as a run of soft
U.S. data suggested downside risks for this week’s June payrolls
report, while the hubbub over recession was still driving a
relief rally in government bonds.
SPDR Gold Trust , the world’s largest gold-backed
exchange-traded fund, said its holdings fell 0.8% to 1,041.9
tonnes on Friday from 1,050.31 tonnes on Thursday.
U.S. Federal government offices, stock and bond markets, and
the Federal Reserve will be closed on Monday for the
Independence Day holiday.
Spot silver eased 0.2% to $19.84 per ounce, platinum
fell 0.5% to $884.49, and palladium dropped 1.3%
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Sherry Jacob-Phillips and Uttaresh.V)
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