Gold firms slightly as price-sensitive buyers return to market
But a sharp rise in US treasury yields, which underpinned the dollar and weighed on stocks, capped gains
Bengaluru — Gold firmed on Thursday as recent weakness tempted some price-sensitive buyers back to the market, but gains were capped by a sharp rise in US treasury yields, which underpinned the dollar and weighed on stocks. Spot gold was up 0.3% at $1,200.12/oz by 11.33am GMT, having traded in a narrow range of $34 for more than a month. US gold futures were 0.1% higher at $1,203.90/oz. Gold has fallen more than 12% since hitting a peak in April, pressured largely by the stronger dollar, which has been boosted by a vibrant US economy, rising interest rates and fear of a global trade war. Appetite for the metal at lower prices helped gold shrug off a surge in US treasury yields to their highest since mid-2011, which pulled global bond yields higher on Thursday and supported the dollar near six-week highs. Stocks slipped. “There is some balance with central banks buying gold quietly and individual investors and hedge funds trying to sell gold,” Hussein Sayed, chief market strategist a...
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