Gold inches higher as US benchmark bond yields retreat from highs
GOLD prices edged higher on Tuesday (Oct 24) as benchmark US Treasury yields pulled back after crossing above 5 per cent in the last session, while investors awaited economic data due later in the week to gauge the outlook for US monetary policy.
Spot gold was up 0.1 per cent at US$1,973.69 per ounce by 0059 GMT, while US gold futures eased 0.1 per cent to US$1,985.10.
The yield on the benchmark 10-year US Treasury note declined after briefly rising above 5.0 per cent on Monday, hitting the July 2007 milestone and further threatening an economic slowdown on higher borrowing costs.
Markets now await US GDP figures for the third quarter on Thursday and the US PCE price index on Friday to gauge the economic strength of the country and for indications of how it would affect the Federal Reserve’s monetary path.
High-interest rates increase the opportunity cost of holding gold, which does not bear any interest.
Investors are also worried about the war in the Middle East where Israel pounded hundreds of targets in Gaza from the air on Monday as its soldiers fought Hamas militants during raids into the besieged Palestinian strip.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4 per cent on Monday.
Spot silver was up 0.1 per cent to US$23.01 an ounce, platinum fell 0.3 per cent to US$893.54 and palladium rose 0.4 per cent to US$1,122.64.
Russia’s Nornickel, the world’s largest palladium producer, said on Monday its year on year palladium and platinum output rose by 1 per cent and 7 per cent, respectively, for the January-September period. REUTERS
Share with us your feedback on BT's products and services
