Gold prices have steadied today after what seemed like a week-long low previously, courtesy of the U.S bond yields and weak economic data helped by a stronger dollar. Spot gold went flat with $1,806.08 an ounce, just after it reached its lowest on the 12th of July standing at $1,791.16 yesterday.
Bullion on the other hand, went down by 0.2% this week after boasting gains for the last four weeks. U.S gold futures climbed up a step to 0.1% reaching $1,807.90 an ounce.
The pressure on U.S Treasuries was eased off after an auction of $16 billion in 10-year TIPS was bid at a record low. The dollar index however, stood strong and held itself close to three and a half month peak against its arch rivals, thus making gold th emost expensive holders compared to other currencies.
Last week saw the number of Americans filing claims for unemployment benefits rose to a two-month high, with the rising case of covid-19 infections many people are reluctant to go back to their usual jobs, even with the price of products increasing due to inflation, their stagnant wages proved to be an issue.
Big tech gave Wall Street a boost to reach a higher close yesterday, building a 2-day rally with lackluster economic data and mediocre corporate earning prompted a pivot back to growth stocks.
The European Central Bank (ECB) has sworn to keep interest rates at record lows for even longer in order to boost the sluggish inflation and took into consideration the rapidly spreading Delta variant putting a setback to the euro zone’s recovery. Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Silver eased 0.1% to $25.42 per ounce, palladium rose 0.3% to $2,725.77, and platinum was flat at $1,092.44.
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Source : Reuters