May 17 Reuters Gold prices rose on Monday to their highest level in more than three months, as a dip in U.S. Treasury yields and worries over surging COVID19 cases in some Asian countries boosted demand for the safehaven metal.
Spot gold was up 0.6 at 1,854 per ounce by 0649 GMT, after hitting its highest since Feb. 2 earlier in the session. U.S. gold futures jumped 0.8 to 1,853.20.
Treasury yields are falling and on the other hand, there seems to be fears about virus resurgence in Singapore, Taiwan and broader AsianPacific markets… driving up demand for safety, said Margaret Yang, a strategist at DailyFX.
Benchmark U.S. 10year Treasury yields slipped to their lowest in nearly a week, reducing the opportunity cost of holding noninterest bearing gold.
Singapore will shut most schools from Wednesday after the citystate reported the highest number of local COVID19 infections in months, while Taiwan imposed new curbs on gatherings and movement.
In India, the worlds secondworst pandemichit country after the United States, the tally of coronavirus infections reached nearly 24.7 million on Sunday.
Investors now await minutes of the U.S. Federal Reserves last meeting due on Wednesday for more cues on the central banks monetary policy and any comments on rising inflation.
Inflation is going to be a strong driver behind gold in the short and mediumterm. There are always concerns about Fed tapering, but the latest nonfarm payrolls report is helping to contain that fear,…