Gold steady as dollar retreat offsets firmer Treasury yields

Gold steady as dollar retreat offsets firmer Treasury yields

Spot gold held its ground at $1,825.66 per ounce, as of 0046 GMT. U.S. gold futures gained 0.6% to $1,825.00.







Reuters









May 17, 2022 / 07:12 AM IST





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Gold prices were steady on Tuesday as a pullback in the dollar supported demand for greenback-priced bullion, although the metal's strength was partially offset by a recovery in U.S. Treasury yields.

FUNDAMENTALS

* Spot gold held its ground at $1,825.66 per ounce, as of 0046 GMT. U.S. gold futures gained 0.6% to $1,825.00.

* The dollar index moved lower for a second straight session, having hitting a 20-year peak last week, with the global economy in focus after weak economic data from China highlighted worries about the prospects for a global slowdown.[USD/]

* A weaker dollar makes gold more attractive for buyers holding other currencies.

* However, benchmark U.S. 10-year Treasury yields climbed, limiting demand for non-interest-bearing gold. [US/] rco

* Gold rose slightly on Monday as a fall in Treasury yields lifted prices after they slid to a 3-1/2-month low earlier in the day.

* Spot silver was flat at $21.59 per ounce, and platinum edged up 0.1%