Commodity News
HeadLine : Gold steadies near one-month high buoyed by softer dollar, yields
Date : Oct 14 2021
Gold prices hovered near a one-month peak on Thursday as the dollar and longer-dated Treasury yields retreated from recent highs following hotter-than-expected U.S. inflation data. Spot gold was little changed at $1,793.72 per ounce. Prices hit their highest level since Sept. 16 at $1,795.81 on Wednesday. U.S. gold futures slipped 0.1% to $1,792.20. Making the precious metal cheaper for holders of other currencies, the dollar index fell 0.5% overnight, retreating from a more than one-year high. Benchmark U.S. 10-year Treasury yields pulled back from a more than four-month high, reducing the opportunity cost of holding non-interest bearing gold. U.S. consumer prices increased solidly in September as Americans paid more for food, rent and a range of other goods, putting pressure on the Biden administration to urgently resolve strained supply chains, which are hampering economic growth. Minutes from the Federal Reserve’s September meeting showed the central banks could start reducing its crisis-era support for the U.S. economy by mid-November, but policymakers remained split over how big of a threat high inflation represents and how soon they may need to raise rates in response. A group of banks that partnered with the London Metal Exchange to launch gold and silver futures in 2017 is preparing to abandon the project after hoped-for volumes did not materialise, three sources with direct knowledge of the matter said. 

Source: Reuters
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