Gold inches down as US bond yields bounce back
GOLD dipped slightly on Tuesday (Jul 5), as a recovery in US Treasury yields from last week's 1-month lows reduced the appeal of non-yielding bullion, with a strong dollar also piling on.
Spot gold was down 0.1 per cent at US$1,807.93 per ounce, as of 1.01 am GMT. US gold futures rose 0.4 per cent to US$1,808.50.
Resuming trade after a weekend extended by the Independence Day holiday on Monday, benchmark US 10-year Treasury yields firmed, weighing on prices of bullion.
Gold prices fell in the previous session on prospects of interest rate hikes from central banks that are trying to take on inflation, but managed to stay above the US$1,800 price support level.
Higher interest rates and bond yields raise the opportunity cost of holding non-yielding bullion.
Spot gold had touched a 5-month low of US$1,783.50 on Friday.
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The dollar steadied at elevated levels on Tuesday, making gold less appealing for buyers holding other currencies.
World stocks, meanwhile, rose in holiday-thinned trade on Monday, helped by a bounce in oil as concerns over tight supply outweighed recession fears.
Ukrainian President Volodymyr Zelensky said on Monday his armed forces were undeterred in their efforts to "break" Moscow's will to pursue a nearly 5-month war, while Russia's Vladimir Putin hailed his military's victory in the gruelling battle of Luhansk.
Spot silver firmed 0.2 per cent to US$19.99 per ounce, while platinum fell 0.2 per cent to US$883.94, and palladium gained 0.5 per cent to US$1,932.22. REUTERS
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