- May 31, 2023
Gold Remains Firm Amid Lower Treasury Yields and Dollar Strength
![Gold Remains Firm Amid Lower Treasury Yields and Dollar Strength](https://images.news18.com/ibnlive/uploads/2023/05/gold-women-new-1-168482190016x9.png)
Last Updated: May 31, 2023, 23:48 IST
New York, United States of America (USA)
U.S. gold futures rose 0.5% at $1,987.20.
Spot gold was up 0.4% at $1,967.29 per ounce by 1209 EDT (1609 GMT) on weaker-than-expected Chicago purchasing managers’ index (PMI)data
Gold firmed on Wednesday supported by lower Treasury yields but the dollar’s strength, with more interest rate hikes in the offing and optimism about a U.S. debt deal kept bullion on course for its first monthly dip in three.
Spot gold was up 0.4% at $1,967.29 per ounce by 1209 EDT (1609 GMT) on weaker-than-expected Chicago purchasing managers’ index (PMI)data, before paring some gains on stronger U.S. jobs data.
It has lost nearly 1.1% this month and over $100 from near-record highs scaled earlier in May.
U.S. gold futures rose 0.5% at $1,987.20.
“We’ve had kind of a push-pull effect,” amid support from lower yields and pressure from the dollar, said David Meger, director of metals trading, High Ridge Futures. [US/] [USD/]
“With the job’s data relatively strong, concern about the possibility of further rate hikes would obviously have a tendency to pressure gold… and yet on the other side, we have the PMI data pulling in the opposite direction.”
The dollar index headed for a monthly gain, making bullion less attractive to overseas buyers.
Investors priced in a in 68.8% chance of a 25 basis point hike in the Federal Reserve’s June meeting versus 60% before the jobs data.
High interest rates dim appeal for zero-yield gold.
But key support around $1,950 could fuel momentum trade to push gold back to $2,000, said Edward Moya, senior market analyst at OANDA.
Traders also focussed on developments around the U.S. debt ceiling, with the U.S. House of Representatives due to vote on a bill to lift the limit.
Silver rose 1.3% to $23.52 per ounce, platinum fell 1.7% to $996.68, while palladium slipped 2.4% at $1,366.67. All three were set for a monthly drop.
Russia’s Nornickel saw the global palladium market swinging to a surplus in 2024 from a deficit in 2023 as recycling outpaces a demand recovery.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)