Gold shines dimly despite the spectre of rising yields and an elevated Dollar Index

GOLD gently faced the onslaught on rising Treasury yields and a stronger US dollar throughout the week, as it crawled up to reclaim its perch above US$1,800. That was a level it had briefly sojourned last week but had not been able to hold with investors favouring rising Treasury yields and the dollar instead.

Yet, rising inflation expectations and softening growth expectations in the major economies are expected to continue to support gold prices. China's troubled property sector also remains a deep concern despite Beijing saying that it has the tools to manage the fallout from the sector.

Gold prices had been holding steady since touching the low of US$1,760 and had been inching higher since Oct 18. Gold's dimly emerging shine has however been overshadowed by silver's run-up. Silver for December delivery on the Comex Exchange rallied 14.5 per cent this month from a low of US$21.410 an ounce.