Gold teeters above $1 800 as lower yields counter dollar strength
Gold inched higher in choppy trade on Monday, as weakness in Treasury yields kept prices above the $1 800 mark and marginally outweighed pressure stemming from an elevated US dollar.
Spot gold was up 0.1% at $1 811.76/oz, as of 05:44 GMT. US gold futures rose 0.7% to $1 813.70.
Bullion prices hit a five-month low of $1 783.50 on Friday, but recovered to end the session nearly steady.
"Once again, we saw buyers support gold with its break below $1 800 on Friday, and with US yields continuing to retrace, it allows the potential for gold to rise over the near term," City Index senior market analyst Matt Simpson said.
Benchmark US 10-year Treasury yields fell to their lowest level in a month on Friday, lifting non-yielding bullion.
"But the reality is that managed funds and large speculators are increasing their short bets against gold, and if we see a close below $1 800 then it could trigger another bout of selling," Simpson said.
The dollar hovered close to recent two-decade highs, continuing to make greenback-priced gold less attractive for buyers holding other currencies, after playing a significant part in bullion's worst quarterly showing in over a year.
Asian equities started cautiously on Monday as a run of soft US data suggested downside risks for this week's June payrolls report, while the hubbub over recession was still driving a relief rally in government bonds.
Spot gold may test a resistance at $1 820 per ounce, a break could lead to a gain to $1 829, according to Wang Tao, technical analyst at Reuters.
US Federal government offices, stock and bond markets, and the Federal Reserve will be closed on Monday for the Independence Day holiday.
Spot silver eased 0.1% to $19.86 per ounce, platinum fell 0.2% to $887.26, and palladium dropped 0.9% to $1 943.18.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation