Gold teeters above $1,800 as lower yields counter dollar strength

July 04, 2022 / 8:55 AM
Sharjah24 - Reuters: Gold inched higher in choppy trade on Monday, as weakness in Treasury yields kept prices above the $1,800-mark and marginally outweighed pressure stemming from elevated U.S. dollar levels.
Spot gold was up 0.1% at $1,811.99 per ounce, by 0319 GMT. U.S. gold futures rose 0.6% to $1,812.10.

Bullion prices hit a five-month low of $1,783.50 on Friday, but recovered to end the session nearly steady.

"Once again, we saw buyers support gold with its break below $1,800 on Friday, and with U.S. yields continuing to retrace, it allows the potential for gold to rise over the near term," City Index senior market analyst Matt Simpson said.

Benchmark U.S. 10-year Treasury yields fell to their lowest level in a month on Friday, buoying non-yielding bullion. [US/]

"But the reality is that managed funds and large speculators are increasing their short bets against gold, and if we see a close below $1,800 then it could trigger another bout of selling," Simpson said.
July 04, 2022 / 8:55 AM

Related Topics

More on this Topic

Rotate For an optimal experience, please
rotate your device to portrait mode.