Gold Hits Over 3-Month High

Date: 17 May 2021 - 22:00

News ID: ۹۰۳۱۲

NEW YORK (Dispatches) - Gold prices hit a 3-1/2 month high on Monday as a dip in U.S. Treasury yields and persistent inflation worries in the bullion market burnished the appeal of the non-yielding metal.
Spot gold was up 0.5% at $1,850 per ounce by 0930 GMT, after hitting its highest since Feb. 2 earlier in the session. U.S. gold futures jumped 0.7% to $1,851.10.
“Higher than expected (U.S.) consumer price inflation and weaker retail sales was really the potent combination for gold,” said Ole Hansen, head of commodity strategy at Saxo Bank.
“Higher inflation has been the key source of inspiration for renewed demand that we have seen in gold, especially during the last couple of weeks.”
Key U.S. economic readings last week showed April U.S. retail sales unexpectedly stalled and a bigger-than-expected rise in consumer prices.
The Fed sought to ease market concerns about rising inflation after the data, keeping a lid on U.S. Treasury yields.
Benchmark U.S. 10-year Treasury yields slipped to their lowest in nearly a week, reducing the opportunity cost of holding non-interest bearing gold.
Investors now await minutes of the U.S. Federal Reserve’s last meeting due on Wednesday for more cues on the central bank’s monetary policy and any comments on inflation.
Gold is seen as a hedge against rising inflation.