Gold holds advance after US jobs data, Yellen’s comments

Gold is holding close to $1 900 an ounce amid a debate around price pressures
Image: Michaela Handrek-Rehle/Bloomberg

Gold declined as comments by Treasury Secretary Janet Yellen on inflation raised expectations for fiscal spending, pushing Treasury yields higher.

Bullion ticked lower after Yellen said Sunday that President Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year, adding that a “slightly higher” interest rate environment would be a “plus.” That helped boost Treasury rates, making non-interest bearing gold seem less attractive.

Moneyweb Insider INSIDERGOLD

Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process.

Choose an option:

R63 per month
R630 per year SAVE R126

You will be redirected to a checkout page.
To view all features and options, click here.

A monthly subscription is charged pro rata, based on the day of purchase. This is non-refundable and includes a R5 once-off sign-up fee.
A yearly subscription is refundable within 14 days of purchase and includes a 365-day membership.

Click here for more information.

Gold has been hovering around $1 900 an ounce amid a debate around price pressures and speculation over whether the Federal Reserve will start talks on the idea of tapering its massive bond-buying program. On Friday, gold jumped as a Labour Department report showed job gains in May fell short of economists’ estimates, diminishing expectations for early monetary tightening. Traders will look to Thursday’s US consumer-price index report for more clues on whether the central bank will be forced to curb inflation.

Stagnating prices have led to a slowdown in the revival of investor interest in gold. Hedge funds trading the Comex only marginally increased their net long exposure to the metal, according to weekly CFTC data. Exchange-traded fund holdings have been little changed in recent weeks after seeing inflows through most of May.

Spot gold declined 0.2% to $1 887.49 an ounce at 2:02 p.m. in London. Prices climbed to $1,916.64 last week, the highest intraday level since January 8. Silver fell, platinum gained and palladium edged lower. The Bloomberg Dollar Spot Index declined 0.1% after dropping 0.5% on Friday.

© 2021 Bloomberg

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

SEARCH COMPANIES
Enter company name or share code:

ECONOMIC DATA  

  CPIThe Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products May 2021 4.40%
  CPI ex OERThe Consumer Price Index excluding Owners’ Equivalent Rent (CPI ex OER) measures monthly changes in prices for a range of consumer products excluding Owners’ equivalent rent that measures changes in the cost of owner-occupied housing May 2021 5.00%
  RepoThe rate at which the Reserve Bank lends money to the country’s commercial banks and set by the Reserve Bank’s Monetary Policy Committee. Jun 2021 3.50%
  Prime lendingThe Prime Lending Rate is the rate of interest that commercial banks will charge their clients when issuing a loan (home loan or vehicle finance) Jun 2021 7.00%
INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: