Gold climbs to a four-week high as the US Treasury gives way and the dollar falls
Gold bars laid out at the Korea Gold Exchange store in Seoul, South Korea. Gold hit a four-week high on Tuesday as a weaker dollar and lower U.S. Treasury yields boosted demand for the safe-haven metal amid growing worries about an economic slowdown.
Seong Joon Cho | Bloomberg | Getty Images
Gold hit a four-week high on Tuesday as a weaker dollar and lower U.S. Treasury yields boosted demand for the safe-haven metal amid growing worries about an economic slowdown.
Spot gold rose 0.4% to $1,778.69 an ounce, by 0044 GMT, its highest level since July 5.
US gold futures gained 0.2% to $1,791.10 an ounce.
The dollar fell 0.2% to a nearly month-long low against its rivals, making greenback-denominated gold cheaper for other currency holders.
Benchmark 10-year US Treasury yields fell to a four-month low, reducing the opportunity cost of holding non-interest-bearing gold.
Data showed U.S. manufacturing activity slowed less than expected in July, with the Institute for Supply Management’s National Factory Activity Index dropping to a record low of 52.8 last month. level since June 2020.
Construction spending in the United States also fell 1.1% in June, as spending on single-family home construction fell sharply amid rising mortgage rates.
These weak US economic readings indicated a slowdown that could prompt the Federal Reserve to be less aggressive in its monetary policy tightening plans.
Wall Street ended a three-day winning streak and crude prices plunged on Monday as economic data from the United States, Europe and China showed demand weakening under inflationary pressures .
Chinese Ambassador to the UN Zhang Jun said a visit by US House of Representatives Speaker Nancy Pelosi to Taiwan would undermine China-US relations. Pelosi was scheduled to travel to Taiwan on Tuesday, three sources said.
Spot silver fell 0.5% to $20.22 an ounce, platinum was down 0.5% at $892.83 and palladium was down 0.2% at 2,124.74 $.