Gold prices on Monday rose above the more-than-three-month low level hit in the previous session, as a weaker dollar outweighed pressure from higher US Treasury yields.
FUNDAMENTALS
* Spot gold was up 0.3 percent at $1,815.69 per ounce, as of 0057 GMT US gold futures gained 0.2 percent to $1,812.20.
* Gold fell more than 1 percent on Friday to its lowest since Feb. 4, and marked its fourth straight weekly decline.
* The dollar steadied on Monday after a fall in the previous session, but the greenback still recorded a sixth straight weekly gain last week on global economic growth concerns.
* A strong dollar makes rival safe-haven gold less attractive for buyers holding other currencies.
Also Read:
* Benchmark US 10-year Treasury yields were up for a second straight session, limiting demand for non-interest bearing gold.
* Inflation will need to move lower for "several months" before Fed officials can safely conclude it has peaked, Cleveland Fed president Loretta Mester said Friday, adding she would be ready to consider faster rates hike by the September Fed meeting if the data do not show improvement.
* Although seen as an inflation hedge, bullion is sensitive to rising US short-term interest rates and bond yields, which raise the opportunity cost of holding it.
* US consumer sentiment slumped to its lowest level in nearly 11 years in early May as worries about inflation persisted, but household spending remains underpinned by a strong labour market and massive savings, which should keep the economy expanding.
* Spot silver was up 0.5 percent at $21.17 per ounce, platinum gained 1.3 percent to $950.84, and palladium rose 0.7 percent to $1,957.88.
(Edited by : Asmita Pant)
First Published: May 16, 2022 8:14 AM IST
