Gold up from 3-month lows as US bond yields weaken
- Date: 16-May-2022
- Source: Zawya
- Sector:Financial Markets
- Country:Middle East
Gold up from 3-month lows as US bond yields weaken
Gold edged up on Monday from a more than three-month trough hit in the previous session, as lower U.S. Treasury yields kept demand for zero-yield bullion afloat above the key psychological support level of around $1,800 per ounce.
Spot gold was up 0.1% at $1,812.15 per ounce, as of 0227 GMT. U.S. gold futures gained 0.1% to $1,809.80.
"With $1,800 being such a big round number, it's natural for it to provide some level of support as some (traders) try to be brave and buy a dip, whilst others close out profitable shorts," City Index's senior market analyst Matt Simpson said.
Marking their fourth straight weekly decline, gold prices fell more than 1% on Friday to the lowest since Feb. 4 at $1,798.86 per ounce, before closing at $1,811.15.
"But it's not looking great for gold bugs right now. Even if we do see a bounce from $1,800, the momentum clearly favours a further downside," Simpson said.
The dollar started the week just off a 20-year high against peers, as investors sought safety due to fears about global growth, and continued to make rival safe-haven gold less attractive for buyers holding other currencies.
However, benchmark U.S. 10-year Treasury yields fell, buoying demand for non-interest bearing gold.