Gold finishes higher and recovers some recent losses as bond yields slide



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Gold futures climbed on Tuesday, with a drop in US Treasury yields, which allowed the heavenly metal to recover more than a third of what it had lost a day earlier, when a rally on the US stock market has prompted some to stabilize in bullion.

Gold for delivery in December

GCZ19, -0.51%

increased by $ 4.10, or 0.3%, to $ 1,515.70 an ounce, after the commodity lost $ 12, or 0.8%, on Monday. September money

SIU19, -0.83%

took 20.8 cents, or 1.2%, at 17,148 ounces, after a loss of 1.1% a day earlier.

Precious metals gained ground while bond yields fell slightly, which gave some momentum to the purchase of metals. The yield on 10-year treasury bills

TMUBMUSD10Y, + 2.50%

was down 4.5 basis points to 1.5529% as gold futures were settled on Tuesday. At the same time, US equities have generally evolved less.

Lower debt yields can make gold and other valuable assets more attractive because metals do not have a coupon.

Gold has maintained its hold on the $ 1,500 ounce level, which many technical analysts see as a bullish signal.

"The Gold Bulls are engaged in a fierce battle to defend the psychological level of $ 1,500 as investors seek riskier assets," wrote Lukman Otunuga, senior research analyst at FXTM.

Assets perceived as havens, such as gold and bonds, saw price rises as investors feared that economic warnings would announce an imminent recession in the United States, forcing the Federal Reserve to lower its rates. interest after July 31st. reduction.

The minutes of the Federal Reserve's July 31 rate-setting committee will be monitored when it's released on Wednesday for signs that the central bank will be as accommodating as the market wants. Wall Street predicts near 100% probability of further interest rate cuts when the Fed wrapped up its two-day political meeting on Sept. 18.

At the July meeting, "the vote in favor of rate cuts was 10: 2 and it will be interesting to see how devilish the details are," said Rhona O'Connell, head of analysis EMEA and Asia markets for INTL FCStone. She noted that the questions and answers posed by Fed Chairman Jerome Powell following the meeting were "to pave the way for a 25-point cut in September.

Otunuga said that the gold should receive "enough support from a Fed's minutes dovish and if Powell reports a reduction in interest rates in September during his speech in Jackson Hole, "he said, referring to the gathering of central bankers at Jackson Hole, Wyo. , which starts on Friday.

Among the other metals traded on the Comex, September copper

HGU19, + 0.31%

lost 2.4 cents, or 0.9%, at $ 2,578 per pound. October platinum

PLV19, -0.96%

decreased by $ 4, or 0.5%, to $ 852.80 per ounce and September palladium

PAU19, -0.50%

set at $ 1,489.70 an ounce, up $ 15.40, or 1%.

The exchange-traded fund in SPDR Gold shares

GLD, + 0.78%

climbed 0.7%.

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