Gold rises as investors weigh drop in yields

Gold rises as investors weigh drop in yields

Gold advanced as investors weighed a drop in real yields against solid US data that signaled a recovery from the pandemic. Bullion rises as much as 0. 6% after ending it was little changed. Real yields fall for the third time in four sessions, buoying gold's attractiveness. Still, data point to a rebound as more Americans are vaccinated against the coronavirus and fiscal relief takes hold. Figures showed US service providers experienced the fastest growth on record in March, and stocks climbed to a record. Bullion has clawed back some ground after dropping last week to near the lowest level since June, with recent movements largely being dictated by the direction of bond yields. Holdings in gold-backed exchange-traded funds are near the lowest in almost a year following sustained outflows. "Gold prices are probably buoyed by falling real yields, as well as a weaker US dollar," said Margaret Yang, a strategist at DailyFX in Singapore. "A slight fall in the real yields reduces the opportunity cost of holding non-yielding gold." Spot gold rises as much as 0. 4% to $1, 735. 60 an ounce at 7:20 am in London. Silver and platinum climbed, while palladium falls. The Bloomberg Dollar Spot