Gold prices in check as central banks rev up policy tightening – Times of India


Gold prices held close to one-week lows on Tuesday as traders wagered that aggressive tightening plans by main central banks would preserve rates of interest elevated for an prolonged interval, boosting US Treasury yields and in flip the greenback.
Spot gold was little modified at $1,842.46 per ounce, as of 0442 GMT, buying and selling in a decent $5 vary.
Earlier within the session, bullion touched $1,836.10, its lowest since June 1. U.S. gold futures had been regular at $1,844.90.
“The transfer larger in U.S. yields forward of this week’s U.S. bond public sale is spooking gold traders … The greenback is surging on the again of these larger yields,” mentioned Stephen Innes, managing associate at SPI Asset Management.
The greenback firmed as benchmark 10-year notice yields
climbed to their highest in almost a month.
Analysts at JP Morgan anticipate gold buying and selling softer in direction of a mean of $1,800 an oz within the third quarter amid an anticipated rebound in investor threat sentiment and a continued rise in U.S. yields.
The Federal Reserve is on observe for half-point rate of interest will increase in June and July, and final week’s strong jobs report boosted expectations of continued tightening by the U.S. central financial institution.
The CPI report due on Friday is being awaited for additional clues on the tempo of U.S. price hikes.
The European Central Bank can be assembly later this week as traders ramp up their bets on price hikes this yr.
Increased charges dent gold’s enchantment as they improve the chance value of holding non-yielding bullion.
“Lastly, we’re in a world central financial institution rate-hike surroundings, which is initially dangerous for gold, however in fact price hikes include financial development consequence, therefore, gold stays gingerly,” Innes mentioned.
Elsewhere, platinum fell 1.2% to $1,005.50 an oz and palladium rose zero.5% to $2,012.69. Silver slipped zero.three% to $22.





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