​Gold prices on Monday rose to their highest level in over three months, as US Treasury yields see decline and concerns over the rising covid cases in some Asian countries. including India increased the demand for the safe-haven metal. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The spot gold grew 0.6 per cent at $1,854 per ounce by 0649 GMT, post hitting its highest since February 2, 2021, earlier in the session. US gold futures jumped around one per cent to $1,853.20. 

The MCX Gold trading almost at 48000 per 10 grams, it jumped by over Rs 300 or 0.7 per cent.  

Margaret Yang, a strategist at DailyFX while speaking to Reuters said, “Treasury yields are falling and on the other hand, there seems to be fears about virus resurgence in Singapore, Taiwan, and broader Asian-Pacific markets... driving up demand for safety.” 

While benchmark US 10-year Treasury yields slipped to their lowest in nearly a week, reducing the opportunity cost of holding non-interest-bearing gold. 

Investors now await minutes of the US Fed Reserve’s last meeting due on Wednesday for more cues on the central bank’s monetary policy and any comments on rising inflation. 

“Inflation is going to be a strong driver behind gold in the short- and medium-term. There are always concerns about Fed tapering, but the latest non-farm payrolls report is helping to contain that fear,” Yang said. 

Gold is seen as a hedge against rising inflation. Spot gold may rise to $1,876 per ounce, as it has broken a resistance at $1,847, according to Reuters technical analyst Wang Tao.