Gold slips as US dollar firms, Treasury yields rebound

Gold slips as US dollar firms, Treasury yields rebound
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BENGALURU (July 21): Gold prices slipped on Wednesday, as a buoyant dollar and a rebound in U.S. Treasury yields stemmed inflows into the safe-haven bullion spurred by fears the Delta coronavirus variant may stall a global recovery.

Spot gold was down 0.1% at $1,808.45 per ounce, as of 0035 GMT.

U.S. gold futures eased 0.1% at $1,808.90 per ounce.

Yields on 10-year Treasuries bounced off five-month lows, increasing the opportunity cost of holding non-interest bearing gold.

The dollar, also considered a safe bet during geopolitical uncertainties, held near a 3-1/2-month peak against its rivals, potentially trimming appetite for gold by making the metal more expensive for holders of other currencies.

Wall Street rebounded on Tuesday as upbeat earnings reports and revived economic optimism buoyed appetite for risk, following a multi-day losing streak driven by a rise in worldwide coronavirus cases and rising deaths in the United States.

Many Bank of Japan policymakers said rising global commodity costs will gradually push up the country's inflation, though some warned that weak consumption will keep any upward pressure modest, minutes of their June meeting showed.

Swiss exports of gold to India edged higher in June, although they remained far below levels earlier this year, while shipments to mainland China fell, Swiss customs data showed on Tuesday.

Russia's central bank said the country's gold reserves stood at 73.7 million troy ounces at the start of July.

Miner Barrick Gold Corp has resumed surface operations including processing at its Hemlo mine in Canada's Ontario province after a worker fatality last week suspended mining, a company spokeswoman said on Tuesday.

Silver was steady at $24.92 per ounce, palladium rose 0.2% to $2,637.68, and platinum gained 0.3% to $1,069.49.