Gold Holds Above $ 1,800 an Ounce as Yields Fall Against the Stronger Dollar

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A worker deals with gold bars in a precious metals factory.

André Rudakov | Bloomberg | Getty Images

Gold held steady on Thursday as falling US Treasury yields countered a stronger dollar after minutes from the latest Federal Reserve meeting showed the central bank to cut back on asset purchases starting this year.

Fundamentals

Spot gold was little changed at $ 1,803.01 an ounce at 1:09 a.m. GMT.

US gold futures edged up 0.1% to $ 1,804.30 an ounce.

Benchmark 10-year US Treasury yields fell to their lowest since February 19, lowering the opportunity cost of holding non-interest-bearing gold.

However, the dollar index traded near the three-month high against its rivals, making gold more expensive for other currency holders.

Fed officials said last month that further substantial progress on the US economic recovery “was generally considered to have not yet been achieved,” but agreed that they should be prepared to act if inflation or other risks were materializing, according to the central bank’s June policy minutes. Meet.

A further rise in coronavirus infections driven by the more virulent delta variant could cause consumers to “pull out” and slow the recovery in the United States, said Federal Reserve Chairman of Atlanta, Raphael Bostic.

The European Central Bank will announce on Thursday the results of a review of its 18-month strategy, redefining its inflation target and defining the role it intends to play in the fight against climate change.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,040.48 tonnes on Wednesday from 1,042.23 tonnes on Tuesday.

Perth Mint gold sales fell to an eight-month low in June, but increased year-over-year, while silver sales hit their highest level in addition to ‘a year, the refiner said in a blog post.

Silver fell 0.2% to $ 26.07 an ounce, palladium fell 0.1% to $ 2,847.97 and platinum slipped 0.4% to $ 1,080.37 .


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