Gold regains some ground as bond yields ease

GOLD on Tuesday (Apr 26) firmed above a near 4-week low hit in the previous session, as lower US Treasury yields lifted prices and a slight retreat in the dollar offered support.

Spot gold was up 0.2 per cent at US$1,902.31 per ounce, as of 12.33 am GMT. US gold futures were up 0.3 per cent at US$1,902.30.

US 10-year Treasury yields eased on Tuesday, increasing the appeal of zero-yield gold.

The dollar edged of its highest level in 2 years scaled in the previous session, boosting greenback-priced gold.

In the previous session, worries over impending interest rate hikes by the US Federal Reserve pressured gold prices to their lowest level since Mar 29.

While gold is highly sensitive to rising US short-term interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion, it is also seen as a safe store of value during economic and political crises.

Russia told the world not to underestimate the considerable risks of nuclear war that it said it wanted to reduce and warned that conventional Western weapons were legitimate targets in Ukraine, where battles raged in the east.

Spot silver gained 0.5 per cent to US$23.73 per ounce, platinum rose 0.6 per cent to US$926.50, and palladium advanced 1.2 per cent to US$2,170.42.

Palladium prices fell nearly 13 per cent on Monday as China's Covid-19-led lockdowns soured the demand outlook for the autocatalyst, used in vehicle exhausts to curb emissions. REUTERS