Gold fell on Tuesday as Treasury yields climbed, although the metal holds above the key support level of $ 1,900 on rising expectations that US lawmakers would be agreement on new stimulus legislation to mitigate the economic impact of the coronavirus
Spot gold fell 06% to $ 1,908 89 an ounce, reaching its highest level since September 21 to $ 1,920 US 71 gold futures settled 06% lower to $ 1,908 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 «
US Long-term Treasury yields hit four-month highs with focus on the outlook for a novel coronavirus US stimulus package after House Speaker Nancy Pelosi and 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 the US the economic recovery remains far from over and could further spiral downward 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 ahead of the US election, but prices should play with $ 1900 / oz 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
Data is a real-time snapshot * Data is delayed by at least 15 minutes Global business and financial news, stock quotes and market data and analysis
Gold, US Department of the Treasury, Federal Reserve, Stimulus, GoldseekCom, Donald Trump, Inflation
World news – US – Gold relaxes after a 2-week high in US Treasury yields climb
SOURCE: https://www.w24news.com
