Gold prices edged up on Monday, hitting near their highest level in more than four months, as the weaker dollar and lower yields on US Treasuries supported the safe haven.

Spot gold rose 0.1% to $ 1,882.10 an ounce at 12:50 a.m. GMT. Gold prices last week hit their highest level since Jan. 8 at $ 1,889.75.

* US gold futures rose 0.3% to $ 1,882.90 an ounce.

* The dollar has remained near its lowest levels in three months amid the resurgence of the euro and other European currencies, making gold cheaper for other currency holders.

* Benchmark 10-year Treasury yields were near the one-week low. Lower bond yields reduce the opportunity cost of holding interest-free gold.

* Friday’s data showed US factory activity picked up in early May amid strong domestic demand. * Federal Reserve officials and new data from the Dallas Fed began slashing expectations for job growth in May in the United States, as corporate hiring plans continue to outstrip supply of people able or willing to work.

* Asian stocks started cautiously on Monday as investors eagerly awaited a key reading on US inflation this week for clues on monetary policy. * The US central bank has pledged to keep interest rates low until the economy reaches full employment, and inflation hits 2% and is on track to “moderately” exceed that level for a certain time.

* Widespread lockdowns associated with rising domestic prices have choked the physical gold market in India as it grapples with a fierce COVID-19 wave.

* Speculators raised their net long positions in COMEX gold during the week ended May 18, the US Commodity Futures Trading Commission said on Friday.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6% to 1,042.92 tonnes on Friday.

* Palladium fell 0.1% to $ 2,780.54 an ounce, silver was flat at $ 27.52, while platinum edged up 0.4% to $ 1,171.64.

(Reporting by Brijesh Patel in Bengaluru, editing by Sherry Jacob-Phillips)

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