28.9 C
New York
Thursday, July 7, 2022

Metals Prices Mixed as Gold Prices Sink Amid Surging U.S. Bond Yields

Metals Prices Mixed as Gold Prices Sink Amid Surging U.S. Bond Yields© Reuters. Metals prices mixed as gold prices sink amid surging U.S. bond yields

Investing.com – Metal prices fell Monday as dollar steadied and U.S. bond yields surged pressuring gold to session lows.

for August delivery on the Comex division of the New York Mercantile Exchange rose by $6.00 or 0.49%, to $1,255.10 a troy ounce from a session low of $1,215.50.

Gold prices gave up overnight gains as rising U.S. bond yields helped the dollar steady, reducing demand for the pressure metal.

The rallied over 2% on the back of surge in following reports the Bank of Japan (BoJ) was discussing changes to its policies in a bid to combat stubbornly low inflation.

Analysts, however, downplayed the likelihood that the BoJ would tweak monetary policy at its next policy meeting next week, as concerns by some at the BoJ about the side-effects of ultra-lose monetary policy like low inflation don’t justify any change in the policy stance.

“We aren’t convinced that those concerns justify any change in the policy stance at the moment, but it is worth asking whether they could become more pressing issues in future,” said Marcel Thieliant, senior Japan economist at Capital Economics.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.20% to 94.45. That dollar index had traded as low as 93.98 intraday.

Gold is sensitive to moves higher in both bond yields and the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding gold as it pays no interest.

Gold had started the week on the front foot as safe-haven demand edged higher after President Donald Trump hit back against his Iranian counterpart Hassan Rouhani, who said hostile U.S. policies towards Tehran could lead to “the mother of all wars.”

The wider metals traded mostly lower as aluminium prices held gains but copper, zinc and nickel futures remained under pressure as investors continued to fret U.S-China trade-war tensions after U.S. Treasury Secretary Steven Mnuchin said further sanctions on China could come into effect.

“It’s definitely a realistic possibility” Mnuchin said of Trump following through on a threat to impose tariffs on all $500 billion worth of goods the U.S. imports from China each year.

fell 0.47% to $2.74, while fell 1.25% to 2,552.25.

rose 0.88% to 2,063.50, while Nickel futures fell 1.05% to 13,372.50.

fell 0.89% to $15.41 a troy ounce, while rose 0.47% to $833.40.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles