Gold Up For Sixth Day As Easing Bond Yields Boost Allure
* Fed minutes due at 1800 GMT
* 10-year US Treasury yields at their lowest for more than four months
* Falling yields opens some margin for gold – analyst (Price update)
July 7 (Reuters) – Gold prices edged up on Wednesday and were on track for a sixth straight session of gains, led by lower US Treasury yields ahead of the minutes of the June Reserve meeting federal government that could provide more clues as to where the policy is going.
Spot gold rose 0.6% to $ 1,807.20 an ounce at 11:24 a.m. GMT, after hitting its highest level since June 17 at $ 1,814.78 on Tuesday. US gold futures gained 0.8% to $ 1,808.60 an ounce.
“Undoubtedly, the main driver (for gold) is falling US Treasury yields,” independent analyst Ross Norman said.
But the recovery in gold prices has been slow and somewhat lackluster given the 7% drop in June when the Fed sent a hawkish signal, Norman said.
Benchmark 10-year Treasury yields hit their lowest level in more than four months.
For now, the focus is on the minutes of the latest Fed meeting, scheduled for 6:00 p.m. GMT, which could shed light on the path of interest rates after a hawkish tilt by the US central bank in the month. latest.
âThe FOMC minutes could have a say in the ability of spot gold to hold onto the $ 1,800 grip,â said Han Tan, chief market analyst at Exinity Group.
“New Hawkish indices could see spot gold fall back below its 100-day simple moving average (SMA) around $ 1,790.”
Gold is very sensitive to rising US interest rates, which reduces the opportunity cost of holding bullion.
Elsewhere, silver rose 0.9% to $ 26.38 an ounce, platinum rose 0.4% to $ 1,095.60 and palladium rose 1.7% to 2,841, $ 77. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Subhranshu Sahu and Emelia Sithole-Matarise)
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