Gold firms as China Evergrande worries lift appeal

[BENGALURU] Gold prices edged higher on Monday as persistent concerns over the fate of debt-laden property giant China Evergrande and its broader impact bolstered the precious metal's safe-haven appeal.

Spot gold rose 0.5 per cent to US$1,757.79 per ounce by 1.27am GMT, while US gold futures were up 0.3 per cent at US$1,757.30.

Asian shares got off to a cautious start on Monday amid a jump in oil prices and uncertainty over the Evergrande saga, as the Chinese firm missed a payment on offshore bonds last week, with further payment due this week.

Further gains in bullion were capped as benchmark 10-year Treasury yields hit their highest since early July, increasing the opportunity cost of holding the non-interest bearing gold.

A pair of Federal Reserve policymakers said on Friday they felt the US economy is already in good enough shape for the central bank to begin to withdraw support for the economy.

Fed Chair Jerome Powell is due to testify this week before Congress on the central bank's policy response to the pandemic.

Physical gold demand in top consumer China rose last week as buyers sought cover from the potential fallout of the Evergrande crisis coupled with factors including a seasonal pick-up in activity.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings increased 0.1 per cent to 993.52 tonnes on Friday from 992.65 tonnes on Thursday.

Speculators cut their net-long positions in Comex silver by 13,178 contracts to 900 in the week to Sept 21, data from the US Commodity Futures Trading Commission showed.

Silver rose 0.9 per cent to US$22.61 per ounce.

Platinum climbed 1 per cent to US$992.00, while palladium inched 0.1 per cent higher to US$1,973.47.

REUTERS