Gold prices touched a more than one-week
high on Monday, as an easing dollar continued to support
greenback-priced bullion, although higher US Treasury yields
Spot gold rose 0.2% to $1,848.96 per ounce, by 0201
GMT. Prices hit their highest since May 12 at $1,853.55 earlier
in the session.
US gold futures gained 0.4% to $1,847.90.
“The jury is still out as to whether gold has weathered the
storm in the medium term, or is (it) merely rallying in response
to a sustained pullback by the US dollar,” OANDA senior
analyst Jeffrey Halley said.
The dollar index began the week on the back foot,
following its first weekly loss in nearly two months, as
investors cut bets on more dollar gains from rising US rates
and hoped that easing lockdowns in China can aid global growth.
A weaker dollar makes bullion more attractive for overseas
“Before turning structurally bullish, I would need to see
gold hold onto its recent gains in the face of dollar strength,
and not dollar weakness,” Halley said.
Benchmark US 10-year Treasury yields, however, firmed
after a three-session losing streak, limiting demand for
St. Louis Federal Reserve Bank President James Bullard
reiterated his view last week that the US central bank ought
to raise interest rates to 3.5% this year to get high inflation
more quickly under control.
Bullion, seen as a safe store of value during times of
economic crises, tends to become less attractive to investors
when US interest rates are raised because it yields no
Reflecting sentiment, SPDR Gold Trust , the world’s
largest gold-backed exchange-traded fund, said its holdings rose
0.69% to 1,063.43 tonnes on Friday from 1,056.18 tonnes on
Spot silver gained 0.4% to $21.84 per ounce, platinum
firmed 0.3% to $958.10, and palladium climbed 0.7%
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by