Gold rebounds on weaker bond yields, Delta variant fears

Mini

Gold prices rose on Tuesday, supported by a drop in US bond yields and concerns over a relentless surge in Delta variant infections, although a stronger dollar kept bullion's gains in check.

Gold rebounds on weaker bond yields, Delta variant fears
Gold prices rose on Tuesday, supported by a drop in US bond yields and concerns over a relentless surge in Delta variant infections, although a stronger dollar kept bullion's gains in check.
Spot gold was up 0.3 percent at USD 1,817.28 per ounce by 0503 GMT, after hitting a one-week low of USD 1,794.06 in the previous session. US gold futures gained 0.5 percent to USD 1,817.80.
"The gold market is getting relief because of extremely low yields. But gold is competing with the dollar for safe-haven demand, so that is going to limit upside momentum over the near-term," said Stephen Innes, managing partner at SPI Asset Management.
Benchmark 10-year Treasury yields were pinned near five-month lows. Lower yields reduce the opportunity cost of holding non-interest bearing gold.
Rising coronavirus cases across the United States and other countries fuelled fears of a pandemic resurgence, sending shockwaves through stock markets, as the highly contagious Delta variant appeared to be taking hold.
Gold is often used as a safe store of value during times of political and financial uncertainty.
However, safe-haven gains for the US dollar limited gold's appeal as the dollar index held firm near 3-1/2-month highs against its rivals. A stronger dollar makes gold more expensive for other currency holders.
European Central Bank policymakers are set for a showdown this week as they chart a new policy path amid growing fears of a third wave of coronavirus infections.
"The Delta variant may possibly cause central banks to be a little more dovish... The UK is running an experiment opening up their economy, which might lead to an explosion in the case count. So, owning gold here for that edge is not a bad idea," Innes said.
China kept its benchmark lending rate for corporate and household loans unchanged at its July fixing on Tuesday.
Silver eased 0.2 percent to USD 25.16 per ounce, palladium gained 0.1 percent to USD 2,598.96, and platinum rose 0.1 percent to USD 1,076.32.

Market Movers

CompanyPriceChng%Chng
Maruti Suzuki6,999.00 -166.05 -2.32
Power Grid Corp168.20 -2.88 -1.68
Coal India142.10 -1.95 -1.35
ITC206.35 -2.75 -1.32
Nestle17,815.70 -206.85 -1.15
CompanyPriceChng%Chng
Maruti Suzuki6,994.85 -155.35 -2.17
Power Grid Corp168.20 -2.85 -1.67
ITC206.35 -2.80 -1.34
Nestle17,804.85 -207.75 -1.15
Bajaj Auto3,783.40 -37.10 -0.97
CompanyPriceChng%Chng
Maruti Suzuki6,999.00 -166.05 -2.32
Power Grid Corp168.20 -2.88 -1.68
Coal India142.10 -1.95 -1.35
ITC206.35 -2.75 -1.32
Nestle17,815.70 -206.85 -1.15
CompanyPriceChng%Chng
Maruti Suzuki6,994.85 -155.35 -2.17
Power Grid Corp168.20 -2.85 -1.67
ITC206.35 -2.80 -1.34
Nestle17,804.85 -207.75 -1.15
Bajaj Auto3,783.40 -37.10 -0.97

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.2650-0.1100-0.15
Euro-Rupee88.1420-0.0690-0.08
Pound-Rupee103.57100.04500.04
Rupee-100 Yen0.6760-0.0006-0.08