Monday, October 25, 2021


Gold rises 1% on decrease U.S. yields, inflation worries

Argor Heraeus SA-branded one kilogram gold bars are organized for {a photograph} on the Chinese language Gold and Silver Change…

By Staff , in Gold , at October 25, 2021


Argor Heraeus SA-branded one kilogram gold bars are organized for {a photograph} on the Chinese language Gold and Silver Change Society in Hong Kong, China.

Brent Lewin | Bloomberg | Getty Photos

Gold costs rose about 1% on Monday, as a retreat in U.S. bond yields and persisting worries about inflation lifted the safe-haven asset forward of main central financial institution conferences this week.

Spot gold gained 0.8% to $1,805.90 per ounce. U.S. gold futures for December supply settled up 0.6% at $1,806.80 per ounce.

“The principle purpose for this rally is that yields backed off just a little bit … however costs are nonetheless sort of vary certain,” stated Daniel Pavilonis, senior market strategist at RJO Futures.

“We now have rather a lot occurring this week when it comes to earnings and knowledge factors. There perhaps a scenario the place inflation goes to affect earnings and the Federal Reserve is realizing that and can thus be pressured to taper.”

U.S. benchmark 10-year Treasury yields fell to a session low of 1.6200%, lowering the chance price of holding non-interest bearing bullion.

Gold eased off its September highs on Friday after U.S. Fed Chair Jerome Powell reiterated his view that prime inflation would probably abate subsequent yr and stated the U.S. central financial institution ought to start lowering its asset purchases quickly.

“Powell’s current feedback might have amplified considerations of inflation sticking round for longer, which is outwardly additional eroding help for workforce ‘transitory’ and fuelling a stronger bid for gold as an inflation hedge,” stated Han Tan, chief market analyst at Exinity.

Investor focus now shifts to the Financial institution of Japan and European Central Financial institution conferences due on Thursday, whereas the subsequent U.S. Fed meet is due on Nov. 2-3.

Whereas gold is usually thought-about an inflation hedge, diminished stimulus and rate of interest hikes push authorities bond yields up, elevating the chance price of holding bullion.

Elsewhere, silver rose 0.7% to $24.48 per ounce.

Platinum rose 1.5% to $1,056.61 per ounce. Palladium rose 1.3% to $2,048.77 per ounce.



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