Gold, silver prices slip to two-week low as US yields, dollar rise

By Bharat Gautam

(Reuters) – Gold hit its lowest in two weeks on Wednesday, though prices have been range-bound as safe-haven demand for bullion helped offset some sustained stress from a firmer dollar and elevated U.S. Treasury yields.

A stronger dollar makes bullion costlier for patrons holding different currencies, whereas positive aspects in benchmark U.S. 10-year Treasury yields scale back the attraction of zero-yield gold.

Spot gold was final down 0.1% at $1,834.89 per ounce, as of 0719 GMT, after hitting its lowest since May 19 at $1,829.24 earlier within the session. U.S. gold futures fell 0.6% to $1,838.00.

The outlook for rates of interest and the dollar, and geopolitical considerations are essential components for gold, and “these competing pursuits are holding gold in a vice,” mentioned Michael McCarthy, chief technique officer at Tiger Brokers, Australia.

U.S. President Joe Biden on Tuesday met with Federal Reserve Chair Jerome Powell to focus on historic inflation that is draining American wallets, even as he assured the central financial institution chief he would have freedom from political interference.

Bullion is taken into account a hedge towards inflation and a safe-haven asset throughout instances of political uncertainty, however the Fed climbing short-term U.S. rates of interest to struggle rising prices will increase the chance value of holding gold.

Russian troops fought to take full management of the jap industrial metropolis of Sievierodonetsk, as the United States mentioned it would present Ukraine with superior rockets to assist it power Moscow to negotiate an finish to the warfare.

Spot gold could lengthen its losses into a spread of $1,817 to $1,826 per ounce, as it has damaged a help at $1,837, in accordance to Reuters’ technical analyst Wang Tao.

Spot silver rose 0.3% to $21.60 per ounce, after hitting its lowest since May 19 earlier within the day of $21.40.

Platinum gained 1.1% to $975.70, and palladium was up 0.9% at $2,016.66.

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)

(Only the headline and movie of this report could have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)

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