News18» News»Business»Gold Edges Up From 6-week Low As Equities Cool Off
1-MIN READ

Gold Edges Up From 6-week Low As Equities Cool Off

Gold Edges Up From 6-week Low As Equities Cool Off

Gold on Monday bounced off a sixweek trough as a rally in equities stalled, though gains were capped by a stronger dollar and higher U.S. Treasury yields.

Gold on Monday bounced off a six-week trough as a rally in equities stalled, though gains were capped by a stronger dollar and higher U.S. Treasury yields.

Spot gold was up 0.1% at $1,849.64 per ounce by 1039 GMT, after touching its lowest since Dec. 2 at $1,816.53. Gold last week recorded its biggest percentage fall since late November.

U.S. gold futures gained 0.8% to $1,849.70.

“Some investors are taking a pause on other markets, and this is supportive for gold,” said ActivTrades chief analyst Carlo Alberto De Casa, adding the evolution of COVID-19 and how stock markets react is a significant element for bullion.

European stocks slipped from more than 10-month highs after surge in coronavirus infections. [.EU]

Meanwhile, the U.S. 10-year Treasury yield firmed above 1% bolstered by expectations of more U.S. fiscal stimulus, helping the dollar scale a near three-week peak. [US/] [USD/]

“We believe safe-haven demand (for gold) should fade further as we project a resumption of the economic recovery despite renewed lockdowns in many European countries,” Julius Baer analyst Carsten Menke said in a note.

Silver fell 0.9% to $25.15 an ounce, having earlier fallen to a near one-month low of $24.30.

Silver “should continue moving in gold’s slipstream,” Menke added.

President-elect Joe Biden on Friday hinted at more direct pandemic relief to families after data showed the U.S. economy shed jobs for the first time in eight months in December.

Federal Reserve Vice Chair Richard Clarida on Friday said the U.S. economy was headed for an “impressive” year, helped by vaccines and larger government spending.

“Positive for gold is that central banks are going to be dovish for the long term… It has built a solid support area around $1,830 and there is a good chance of gold recovering to $1,880 or $1,900,” ActivTrades’ De Casa said.

Platinum fell 1.5% to $1,048.65 per ounce, while palladium dipped 0.6% to $2,356.82.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Next Story
Loading...