Gold Prices Eye Biggest Daily Gain of Month

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Gold futures climbed Thursday, with prices poised to log their biggest daily gain since March as benchmark U.S. bond yields pull back and rising U.S. tensions with China and Russia boosted the haven metals appeal to investors.

Gold also moved up after a series of good reports on the health of the U.S. economy, which provided some support for bullion given the threat of inflation.

The climb in U.S. tensions with China, as well as Russia, may be encouraging some safehaven buying of the metal, said Michael Armbruster, managing partner at Altavest.

Tensions between the U.S. and China over Taiwan have climbed, and the Biden administration on Thursday expelled some Russian diplomats and announced sanctions against dozens of people and companies, partly in retaliation to Russias interference in last years presidential election.

The U.S. is talking tough with China and Russia and this may be the first sign that markets are starting to price in a new risk, Armbruster told MarketWatch. So far, equity markets are oblivious.

June gold  rose 31.60, or 1.8, to 1,767.80 an ounce, after declining 0.7 a day ago. That would mark the largest oneday dollar and percentage rise for a mostactive contract since early March, FactSet data show.

A closely followed report on U.S. retail sales showed a 9.8 rise in March thanks to 1,400 stimulus checks from the government to consumers, reflecting accelerating economic growth in the aftermath of the COVID pandemic.

The US retail sales number…

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