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Gold holds five-day rise as oil drop eases inflation worries
Bullion was around $4,660 an ounce, near a three-month high, after US Treasury yields fell and talk of a temporary Strait of Hormuz maritime corridor supported risk sentiment.
Gold traded near a three-month high and held a five-day gain as concerns about inflation eased, with US Treasury yields slipping and oil prices dropping, according to LiveMint Markets.
The outlet said bullion was around $4,660 an ounce, after climbing more than 7% over the past week. It attributed part of the rally to renewed interest in the so-called debasement trade, following Treasury buybacks of long-dated government debt.
LiveMint Markets linked the broader move in yields and energy prices to Middle East de-escalation efforts, including talks between Iran and Oman about a temporary joint maritime corridor to allow some shipping to resume in the region.
The report added that lower energy prices could reduce pressure on the Federal Reserve to raise rates, noting commentary from Boston Fed President Susan Collins that she supported holding rates steady if progress is made toward the central bank’s 2% inflation target. It also flagged investor attention on upcoming US Personal Consumption Expenditure Index data.
At the time of the report, gold was up 0.1% to $4,659.52 an ounce, silver rose 0.3% to $68.83, platinum was little changed, and palladium was up.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|Platinum $1,756.80 ▲1.8%