EbeneNews – United States – Gold Relaxes After 2 Week High As US Treasury Yields Rise


    Gold fell on Tuesday as Treasury yields climbed, although the metal remains above the key support level of $ 1,900 on rising expectations that U.S. lawmakers would be agreement on new stimulus legislation to mitigate the economic impact of the coronavirus

    Spot gold fell 06% to $ 1,901 89 an ounce by 2:18 pm EDT (1818 GMT), hitting its highest level since September 21 at $ 1,920 71 US Gold Futures paid 06% less at 1908 $ 80

    « The reason the market is hoping for a tax deal is because, in our opinion, gold has actually gone from being a safe haven asset to being an inflation hedge asset, » said Daniel Ghali, strategist in commodities at TD Securities

    « As an inflation hedging asset, the bottleneck here is actually inflation expectations The market would need to see them rise further to lower real rates and raise gold « 

    Long-term U.S. Treasury yields hit four-month highs with the focus on the prospects of a new U.S. coronavirus stimulus package after House of Commons Speaker Nancy Pelosi and the Treasury Secretary Steven Mnuchin spoke Monday on new relief measures

    Gold tends to benefit from widespread central bank stimulus as it is widely seen as a hedge against inflation and currency degradation

    Federal Reserve Chairman Jerome Powell has warned that the US economic recovery remains far from complete and could further slide into a downward spiral if the coronavirus is not effectively controlled and growth sustained

    « Gold prices have softened as the dollar has benefited from comments from Fed Chairman Powell that insufficient budget support will lead to a weak recovery, » said Suki Cooper, analyst at Standard Chartered

    « Tactical positioning remains relatively light heading into the US election, but prices should play with $ 1,900 / ounce over the coming sessions given the wide range of support and resistance levels »

    Elsewhere, 19% silver rebate to $ 2388 an ounce, platinum fell 35% to $ 86526 while palladium rose 01% to $ 236495

    Gold, Donald Trump, Stimulus, Federal Reserve System, Inflation

    EbeneNews – United States – Gold eases from 2-week high as US Treasury yields climb

    SOURCE: https://www.w24news.com



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