U.S. Treasury yields eased as economic data took center stage and gold rose

U.S. Treasury yields eased as economic data took center stage and gold rose

Gold rose on Wednesday, hovering below the previous session’s near five-month high, as U.S. Treasury yields eased and investors awaited key economic data this week that will shed light on the inflation outlook.

Spot gold was up 0.4% at $1,906.80 per ounce at 1:43 p.m. EDT, after touching a high of $1,916.40 on Tuesday. Gold futures in the United States ended the day at $1,909.90, up 0.3%.

“At this point it’s the anticipation of some of the economic news that’s coming out this week … which is going to further the concerns regarding inflation and will have a positive impact on the momentum in the gold market,” said Jeffrey Sica, founder of Circle Squared Alternative Investments.

Benchmark U.S. 10-year Treasury yields fell below 1.60%, reducing the opportunity cost of owning gold, while stocks hovered near record highs.

Investors are now awaiting U.S. jobs data due on Friday for clues on future monetary policy.

The dollar index retreated from session highs, making gold more affordable for holders of other currencies.

Among other precious metals, palladium was steady at $2,860.21 per ounce, silver was up 0.7% at $28.10 and platinum was down 0.2% at $1,189.10.

Damon Harrison
Market Analyst, IPG Group