News

Gold Eyes Best Month since July 2020 on Softer Dollar

0

Silver heads for best month since December

Gold up nearly 8 this month

Palladium tracks first monthly decline in four Updates prices

May 31 Reuters Gold prices rose on Monday and were headed for their best monthly jump since July 2020, boosted by a weaker U.S. dollar and lower bond yields, while growing inflationary pressure also lifted demand for the safehaven metal as a hedge.

Spot gold was up 0.2 at 1,906.91 per ounce by 0515 GMT, while U.S. gold futures gained 0.3 to 1,913.10. Bullion has risen nearly 8 so far this month.

Gold is pretty much drawing its strength from inflation fears and some inclination of the yields, said Stephen Innes, managing partner at SPI Asset Management.

The dollar is staying weaker, thats fairly supportive. Gold bulls now have their eyes set on 2,000 and most are thinking its going to go quite higher.

The dollar index eased 0.1 against its rivals, while the U.S. 10year Treasury yield fell to 1.593 on Friday , reducing the opportunity cost of holding noninterest bearing gold.

Data on Friday showed U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserves 2 target and posting its largest annual gain since 1992.

Gold, often used as a hedge against inflation, has benefited from recent data showing a rise in prices in the United States and the UK.

Investors focus this week will be on U.S. payrolls data due on Friday with median forecasts at 650,000.

On the technical front, a…

Asia Shares Look to Extend Rally before U.S. Jobs Test

Previous article

Europe Stocks Retreat from Record Highs, Deutsche Bank Drags

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News