Home Finance Gold declines as yield rises after manufacturing reports

Gold declines as yield rises after manufacturing reports


(Bloomberg) — Gold fell for the first time in three sessions as bond yields rose after positive economic readings, fueling optimism in the recovery from the pandemic.

The yield on the benchmark 10-year Treasury rose two basis points, impacting demand for non-interest bearing bullion.

Gold gave up gains after US manufacturing data topped estimates, raising concerns that the Federal Reserve may have to consider tougher policy sooner than expected. In May, bullion wiped out losses for the year with a 7.8% advance during the month, helped by poor economic data and signs of a pick-up in inflation, which boosted demand for the metal as a store of value.

“There was a solid selloff in gold this morning,” said Tai Wong, head of metal derivatives trading at BMO Capital Markets. “The bounce in yields to date has encouraged some profit taking and pushed gold below $1,900 an ounce for some time,” he said.

Spot gold fell 0.3% to $1,901.80 an ounce in New York at 2:49 pm. Platinum and palladium advanced, while silver changed little. Gold futures for August delivery were down less than 0.1% at $1,905 an ounce on Comex.

A key driver of last year’s gold rally has been returning investors to exchange-traded funds backed by bullion. Money managers have also increased their net bullish gold bets, CFTC data on futures and options shows. “Gold market momentum remains strong, with investor inflows growing rapidly,” Australia and New Zealand Banking Group Ltd said in an emailed note.

More stories like this. are available on bloomberg.com

subscribe now To stay ahead with the most trusted business news source.

©2011 Bloomberg LP

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.

For latest entertainment news| health news| political news| sports news| travel news| Covid-19 news| Tech news| Digital Marketing| Lyrics


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.