Commodity News
HeadLine : Gold edges down on firmer dollar, rising bond yields
Date : Oct 6 2021
Gold prices inched lower on Wednesday as a firmer dollar and rise in U.S. Treasury yields weighed on the precious metal’s appeal, with investors focused on U.S. non-farm payrolls data due later this week. Spot gold fell 0.1% to $1,758.06 per ounce, while U.S. gold futures were 0.1% lower at $1,758.40. While the dollar held close to its highs for the year, denting gold’s appeal for those holding other currencies, the benchmark 10-year yield ticked higher. Friday’s U.S. payrolls data is forecast to show 488,000 jobs were added in September, and would be crucial to the Federal Reserve’s timeline for tapering economic support. Chicago Fed President Charles Evans said on Tuesday he continues to believe supply bottlenecks are driving most of the recent increase in inflation and will subside. He also repeated that the central bank is close to begin reducing its monthly asset purchases.Gold is often viewed as an inflation hedge, but reduced central bank stimulus and interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding gold that pays no interest. 

Source: Reuters
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