The Star E-dition

TREASURY YIELDS LIFT GOLD

I Reuters

GOLD FIRMED yesterday supported by lower Treasury yields but the dollar’s strength, with more interest rate hikes in the offing and optimism about a US debt deal kept bullion on course for its first monthly dip in three.

Spot gold was up 0.5% at $1 968.19 (about R38 787) an ounce by 4.33pm on weaker-than-expected Chicago purchasing managers’ index (PMI) data, before paring some gains on stronger US jobs data.

It has lost nearly 1.1% this month and $120 from near-record highs scaled earlier in May. US gold futures climbed 0.4% at $1 976.30 an ounce.

“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.

“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 71% chance of a 25 basis point hike in the Federal Reserve’s June meeting versus 60% before the data.

High interest rates dim appeal for zero-yield gold.

But key support around $1 950 could fuelling momentum trade to push gold back to $2 000, said Edward Moya, senior market analyst at Oanda.

Silver rose 0.4% to $23.30 an ounce, platinum fell 1.3% to $1 000.84, while palladium slipped 2.3% at $1 368.65. All three were set for a monthly drop.

Meanwhile, oil prices fell yesterday on a stronger dollar and as weak data from top oil importer China raised demand fears.

Brent crude futures for August delivery were down 73 cents, or 0.99%, to $72.98 a barrel at 3.53pm. US West Texas Intermediate crude fell 90c, or 1.3%, to $68.56 a barrel.

BR NEWS

en-za

2023-06-01T07:00:00.0000000Z

2023-06-01T07:00:00.0000000Z

https://thestar.pressreader.com/article/282067691317536

African News Agency