Gold prices flat as rise in U.S. bond yields weighs


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Gold prices were nearly flat on Tuesday,

as recent gains in Treasury yields prevented any significant

interest in bullion.

FUNDAMENTALS

* Spot gold was last up 0.1% at $1,824.65 per ounce

by 0056 GMT. U.S. gold futures were flat at $1,824.70.

* A move by Britain, the United States, Japan and Canada to

ban new imports of Russian gold is being seen as largely

symbolic within the global bullion market, as Russian exports to

the West have already dried up.

* SPDR Gold Trust , the world’s largest gold-backed

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exchange-traded fund, said its holdings fell 0.44% to 1,056.40

tonnes on Monday from 1,061.04 tonnes a day earlier.

* China’s net gold imports through Hong Kong jumped 58.3% in

May from the previous month, Hong Kong’ official data showed on

Monday, as pandemic-related curbs were relaxed in major cities.

* The U.S. dollar struggled against its major rivals on

Monday as softening inflation expectations prompted a

reassessment of the prospects for aggressive interest rate hikes

but volatile markets cushioned a broader decline.

* A weaker dollar makes gold more attractive for buyers

holding other currencies.

* Although gold is considered an inflation hedge by many,

higher interest rates and bond yields raise the opportunity cost

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of holding bullion, which yields no interest.

* Benchmark U.S. 10-year Treasury yields steadied after

gains in the previous session, limiting demand for gold.

* New orders for U.S.-made capital goods and shipments

increased solidly in May, pointing to sustained strength in

business spending on equipment in the second quarter, but rising

interest rates and tighter financial conditions could slow

momentum.

* Spot silver dipped 0.1% to $21.13 per ounce, and

platinum eased 0.1% to $907.38, while palladium

rose 0.4% to $1,878.18.

DATA/EVENTS (GMT)

1400 US Consumer Confidence June

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Rashmi Aich)

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