finance

Gold Advances as Investors Weigh Bond Yields, Retail Sales


2/2

© Bloomberg. A worker pours silver from a furnace at the ABC Refinery smelter in Sydney, New South Wales, Australia, on Thursday, July 2, 2020. Western investors piling into gold in the pandemic are more than making up for a collapse in demand for physical metal from traditional retail buyers in China and India, helping push prices to an eight-year high. Photographer: David Gray/Bloomberg

2/2

(Bloomberg) — Gold climbed for a third day as investors weighed fluctuations in bond yields and the stall in U.S. retail sales, along with the latest series of lockdowns in Asia to curb spiking coronavirus cases.

The yield on 10-year Treasuries steadied after declining Friday following a report which showed the value of overall retail purchases in the U.S. was essentially unchanged in April, when economists had projected a 1% gain. Federal Reserve Bank of Cleveland President Loretta Mester played down signals from data that she warned will be volatile as the economy reopens and stated that the U.S. central bank’s policy is in a good place right now.

After slumping in the first quarter, gold has been on the mend amid uncertainty over the pace of the global recovery from the pandemic, rising inflation expectations and assurances from the Fed that monetary policy will remain accommodative. Investors may be warming up again to the precious metal, with hedge fund managers increasing their net bullish gold bets to the highest in three months, while data compiled by Bloomberg show holdings in bullion-backed exchange traded funds climbed for a sixth straight day.

rose 0.5% to $1,852.52 an ounce by 9:38 a.m. in Singapore, after advancing 0.9% on Friday. Silver and palladium gained, while platinum was steady. The Bloomberg Dollar Spot Index was up 0.1%.

On the virus front, Singapore and Taiwan, success stories in containing Covid-19, are both rapidly imposing aggressive restrictions at home — and tightening travel between each other.

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more