Wednesday, October 13, 2021

PRECIOUS-Gold jumps 2% as U.S. greenback, bond yields retreat

* Greenback eases off greater than one-year excessive * Banks put together to scrap LME gold and silver contracts *…

By Staff , in Gold , at October 13, 2021

* Greenback eases off greater than one-year excessive

* Banks put together to scrap LME gold and silver contracts

* Fed lays out plan for tapering bond-buying program (Provides Fed minutes, updates costs)

Oct 13 (Reuters) – Gold costs rose 2% to a close to one-month peak on Wednesday, as a pullback within the greenback and U.S. Treasury yields lifted demand for the safe-haven metallic.

Spot gold was up 1.8% at $1,791.41 per ounce by 2:13 p.m. ET (1813 GMT).

U.S. gold futures settled 2% increased at $1,794.70.

Different valuable metals additionally rose, with spot silver rising 2.5% to $23.09 per ounce, platinum gaining 1.2% to $1,019.54 and palladium including 3.5% to $2,116.68.

“Gold is simply following yields in the mean time. The preliminary response after CPI (shopper worth index) information was a giant spike in yields, which is now beginning to fade away,” mentioned Daniel Pavilonis, senior market strategist at RJO Futures.

Gold initially pared good points as benchmark U.S. 10-year Treasury yields rose above 1.6% following information displaying U.S. shopper costs elevated solidly in September and have been poised for an additional rise in coming months.

However a subsequent pullback in yields, which diminished the chance price of holding non-interest bearing gold, drove a robust rally in valuable metals.

The metallic additionally drew assist from a slide within the greenback and worries that prime inflation would hit world financial progress.

“Inflation expectations combined with world progress considerations have made many buyers nervous that the enterprise and the buyer might be a lot weaker within the second half of 2022. Secure-haven flows are beginning to come gold’s manner,” Edward Moya, senior market analyst at brokerage OANDA, mentioned in a notice.

U.S. central bankers signaled they may begin lowering their crisis-era assist for the economic system in mid-November, although they continue to be divided over how a lot of a menace excessive inflation poses and the way quickly they might want to boost rates of interest in response, minutes from their Sept. 21-22 coverage assembly confirmed.

In the meantime, a bunch of banks that partnered with the London Steel Trade to launch gold and silver futures in 2017 is making ready to desert the mission after hoped-for volumes didn’t materialise.

Reporting by Brijesh Patel in Bengaluru; Enhancing by Vinay Dwivedi and Maju Samuel

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