Gold flat as dollar strength counters weaker US bond yields

Gold flat as dollar strength counters weaker US bond yields

Spot gold held its ground at $1,816.63 per ounce at 0047 GMT. U.S. gold futures edged 0.1% lower to $1,814.10.







Reuters









May 19, 2022 / 07:13 AM IST





Gold, Gold Prices



Gold prices were flat on Thursday, as an elevated dollar weighed on greenback-priced bullion and countered support from lower Treasury yields, with the metal's outlook already dulled by an aggressive Federal Reserve stance on inflation.

FUNDAMENTALS

* Spot gold held its ground at $1,816.63 per ounce at 0047 GMT. U.S. gold futures edged 0.1% lower to $1,814.10.

* The U.S. dollar rose on Wednesday, snapping a three-session losing streak, as concerns about the outlook for global economic growth and rapid inflation knocked sentiment a day after Fed Chair Jerome Powell struck a more hawkish tone. [USD/]

* A stronger dollar makes gold less attractive for buyers holding other currencies.

* U.S. Treasury yields fell on Wednesday, tracking losses on Wall Street, after poor U.S. housing data added to growing slowdown concerns amid aggressive monetary tightening by the Fed, buoying demand for zero-yield gold. [US/] [MKTS/GLOB]

* Two U.S. central bankers say they expect the Fed to downshift to a more measured pace of policy tightening