Moneycontrol PRO
Upcoming Webinar:Join us for 'The Future Techshot' on Sept 22, 10:30am to gain insights into role of tech in streamlining businesses. Register Now!

Gold eases on global recovery hopes; weak dollar limits losses

Spot gold was down 0.2% at $1,877.26 per ounce by 0106 GMT.

May 25, 2021 / 07:38 AM IST
The SGB for the current financial year is issued in six tranches. The first tranche of subscriptions was opened from May 17-May 21.

The SGB for the current financial year is issued in six tranches. The first tranche of subscriptions was opened from May 17-May 21.

Gold prices edged lower on Tuesday as hopes of quick economic recovery lifted demand for riskier assets, although a weaker dollar and lower U.S. Treasury yields limited losses for the safe-haven metal.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,877.26 per ounce by 0106 GMT.

* U.S. gold futures fell 0.3% to $1,879 per ounce.

* The dollar languished near four-month lows against major currencies, making gold cheaper for other currency holders. [USD/]

Close

* U.S. Treasury long-dated yields fell to two-week lows after a few Federal Reserve officials affirmed their support to keep monetary policy accommodative for some time. [US/]

* St. Louis Fed President James Bullard said he expects the inflation rate to be above 2% both this year and the next but several Fed officials, including Bullard, continued to support the central bank's policy in separate remarks.

* Some investors view gold as a hedge against higher inflation.

* Sentiment in wider financial markets remained upbeat. [.N] [MKTS/GLOB]

* Global real gross domestic product is projected to surge 5.7% in 2021, its strongest advance since 1973, while the U.S. economy will likely expand 6.7% this year, according to the latest economic forecasts for IHS Markit.

* Singapore's economy expanded more than initially estimated in the first quarter, helped by stronger-than-expected manufacturing, official data showed on Tuesday.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 1046.12 tonnes on Monday from 1042.92 tonnes on Friday. [GOL/ETF]

* Palladium rose 0.5% to $2,741.24 per ounce, silver fell 0.6% at $27.64 and platinum slipped 0.2% to $1,171.54.

DATA/EVENTS (GMT)

0600 Germany GDP Detailed QQ, YY SA, NSA Q1

1400 US Consumer Confidence May

1400 US New Home Sales-Units April
Reuters
first published: May 25, 2021 07:27 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark