Metals Stocks: Gold price slips, on pace to notch back-to-back losses

This post was originally published on this site

Gold futures traded modestly lower early Tuesday, putting the precious on track to log only the second consecutive loss in April.

Reignited worries that bond yields will resume a steady uptrend, deflated some appetite for bullion, commodity analysts said.

The 10-year Treasury note’s yield
BX:TMUBMUSD10Y
was steady at around 1.60%, while the comparable German bund
BX:TMBMKDE-10Y
was touching its highest yield in about a year. A rise in government debt yields can weigh on appetite for precious metals which don’t offer a coupon.

“The 50-day [simple moving average] at $1,750 may offer an area to rest should the move in yields gather steam,” wrote Neil Wilson, chief market analyst at Markets.com in a daily note.

June gold 
GC00,
+0.14%

GCM21,
+0.14%

edge 60 cents, or less than 0.1%, at $1,770.30 an ounce, after declining 0.5% a day ago.

The moves for bullion also came as the dollar was perking up, trading up 0.1%, as gauged by the ICE U.S. Dollar index
DXY,
+0.02%

after sharp down move this month. A stronger buck can make dollar-priced commodities less appealing for overseas buyers.

“The softer dollar is a support but yields matter more for gold,” Wilson wrote.

Meanwhile, silver prices
SI00,
+0.53%

for May delivery
SIK21,
+0.53%

were flat at $25.84 an ounce, after declining 1% on Monday.

Precious metals declined, despite renewed worries about a remergence of COVID-19 in parts of the globe, including India, where the outbreak has pushed the country to the second-highest infection rate in the world.

Add Comment