Sunday, October 17, 2021

PRECIOUS-Gold extends slide on U.S. retail gross sales shock, greater yields

* Silver on observe for greatest week in seven * U.S. retail gross sales rose 0.7% in September * Gold…

By Staff , in Gold , at October 17, 2021

* Silver on observe for greatest week in seven

* U.S. retail gross sales rose 0.7% in September

* Gold snaps three-session rally (Updates costs, add quote)

Oct 15 (Reuters) – Gold costs fell on Friday as a rebound in U.S. bond yields and a shock improve in September retail gross sales dented bullion’s safe-haven standing.

Spot gold fell 1.5% to $1,768.38 per ounce by 01:43 p.m. ET (1743 GMT). U.S. gold futures settled down 1.7% at $1,768.30.

“Gold has every little thing going towards it. Actual charges are rising, equities are greater, so is bitcoin,” mentioned Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

U.S. retail gross sales unexpectedly elevated in September, boosting equities, and increasing losses in risk-hedge gold.

Elevating gold’s alternative price, U.S. benchmark 10-year Treasury yields recovered from a greater than one-week low hit on Thursday.

Whereas most Fed policymakers agree the central financial institution might begin lowering its month-to-month bond purchases as quickly as subsequent month, they’re sharply divided over inflation and what they need to do about it.

Traders are seemingly anticipating solely a average tightening from main central banks and “that shouldn’t trigger an excessive amount of of an issue for gold as buyers hedge towards elevated value ranges,” mentioned Fawad Razaqzada, analyst with ThinkMarkets.

Decreased stimulus and rate of interest hikes push authorities bond yields up, elevating the chance price of holding non-yielding bullion.

Within the bodily markets, gold costs flipped to premiums in India, bolstered by pageant demand.

Bullion stays on track for a small weekly achieve because the greenback weakened.

Silver fell 0.9% to $23.32 an oz, however was nonetheless headed for its greatest weekly achieve in seven.

Platinum steadied at $1,055.24, whereas palladium fell 2.4% to $2,078.27. Each metals are utilized by automakers in catalytic converters to wash automotive exhaust fumes.

Platinum group metals’ costs might nonetheless have a approach to go earlier than they’re again on a good keel, StoneX analyst Rhona O’Connell mentioned in a word.

“Because the semiconductor chip supply dislocation is displaying little indicators of waning, car producers are slicing output left proper and centre.” (Reporting by Bharat Govind Gautam, Ashitha Shivaprasad and Nakul Iyer in Bengaluru; Modifying by Uttaresh.V, Shailesh Kuber and Maju Samuel)

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