Gold steadies after Friday's slide on lower stock markets
Gold prices steadied on Monday as a slide in stock markets helped the precious metal claw back some lost ground after logging its biggest one-day loss in two months in the previous session.
Prices fell 1.2 percent on Friday after stronger-than-expected U.S. payrolls data shored up expectations that a pickup in inflation would spur further U.S. interest rate hikes this year. That boosted the U.S. dollar, in which gold is priced.
The greenback rose slightly on Monday, while stock markets were routed around the globe as resurgent U.S. inflation raised the possibility that the Federal Reserve would tighten policy more aggressively than previously expected. [MKTS/GLOB]
Animal vs Sam Bahadur Box Office Collection Day 9: Animal crosses Rs 600 crore club, beats Sam Bahadur | Check day-wise collection
Post Office Time Deposit Scheme: Interest up to 7.5%, guaranteed returns, fixed income, preclosure rules, other benefits
India vs South Africa 1st T20I Free Live Streaming: When and Where to watch IND VS SA T20I series Match LIVE on Mobile Apps, TV, Laptop, Online
NPS (National Pension System): How to create a corpus of Rs 5 crore with Rs 442 investment/day? After retirement, you will get Rs 2.5 lakh every month
Animal Box Office Collection: Ranbir Kapoor-starrer touches Rs 600 crore mark worldwide | Check OTT release details
Vehicle Insurance Policy: If your car drowns during flood or storm, can you claim insurance? Know rules
Spot gold steadied at $1,334.40 an ounce by 1:34 p.m. EST (1834 GMT), still well below late January`s 17-month high of $1,366.07. U.S. gold futures for April delivery settled down 80 cents, or 0.1 percent, at $1,336.50.
"Gold is going to start to be noticed as an inflation hedge more so than before, because the stock market seems to be not just in a selloff, but in a probable profit-taking move," said George Gero, managing director of RBC Wealth Management in New York.
U.S. stocks extended their selloff after Friday`s drop on the back of rising bond yields and prospects for increasing inflation. [.N]
"I would expect the recent correction in equity prices to show a little bit more bid (in gold), but at the moment it doesn`t seem to be the case," said Daniel Ghali, commodities strategist at TD Securities in Toronto.
"That reinforces the argument that we might see a little consolidation in gold."
Gero said gold purchases ahead of the Chinese Lunar New Year in mid-February also supported prices.
Gold normally responds to inflationary signs, but this time, even with Chinese Lunar New Year and India showing demand, the recent lower prices are keeping a rally muted, he added.
"Gold may pick up later in the week as equity sellers allocate more to precious metals," Gero wrote in a market note.
Spot silver rose 0.8 percent at $16.72 an ounce after matching the previous session`s five-week low of $16.54. It fell 3.7 percent on Friday in its biggest one-day decline since December 2016.
Platinum was flat at $986.24 an ounce, still hovering near a three-week low, while palladium dropped 1.5 percent to $1,031.20.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)