(Reuters) – Gold Prices on Wednesday retreated from five-month highs marked in the previous session, as bond yields increasingly weighed on the safe-haven metal, while strong US economic data prompted a turnaround in riskier assets.
* spot Gold It was down 0.1% at $1,898.58 an ounce as of 0053 GMT, hitting its highest level since January 8 at $1,916.40 on Tuesday.
* US Gold Futures fell 0.2% to $1,901.90 an ounce.
* Data showed US manufacturing activity picked up in May as orders spurred demand in a reopening economy. But the unfinished work piled up due to lack of raw material and labor.
* The US 10-year Treasury yield rose to a more than one-week high overnight, adding to the opportunity cost of holding interest-free gold. [US/]
* A sense of risk in the broader final market Investors weighed in on the latest US economic data for signs of a rebound and a higher inflation reading. [MKTS/GLOB]
* Euro zone inflation surpassed the European Central Bank’s elusive target in May, posing a communication challenge for policymakers, who will live happily with higher prices for now but could face backlash from angry consumers .
* High inflation is exacerbating the plight of savers and the ECB must respond by raising its interest rates to 0%, Bavaria’s Finance Minister Albert Feuerker told the daily Bild in comments published on Wednesday.
* Market participants this week will focus on US payrolls data on Friday for further clarity on economic recovery and near-term Federal Reserve policy action.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 1,045.83 tonnes on Tuesday, from 1,043.21 tonnes on Friday. [GOL/ETF]
* Palladium was down 0.1% at $2,856.82 an ounce, silver was down 0.1% at $27.88 and platinum was steady at $1,191.51.
0130 Australia Real GDP QQ, YY SA Q1
1200 BRAZILIAN INDUSTRIAL PRODUCTION MM, YY APR
1800 US Federal Reserve Issues Beige Book
(Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips)
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