Gold futures traded above a price that had been viewed as a point of resistance for bullion for weeks, and turned positive in the year to date, perhaps pointing to a nearterm bullish outlook for the precious metal, according to traders.
June gold was 14.70, or 0.8, higher at 1,912.70 an ounce, after a 0.7 gain on Tuesday, a move that extended a move for the mostactive contract to the highest settlement since Jan. 7.
Weakness in the U.S. dollar particularly against Chinas yuan which is at its highest in about three years, and a retreat in Treasury yields, with the 10year Treasury note at around 1.56, have buttressed gold moves.
Falling yields can benefit precious metals and other commodities, which dont offer a coupon, by reducing the opportunity cost of holding them against yieldbearing assets. And dollar weakness can make assets priced in the currency more attractive to overseas investors.
Commodity analysts have made the case that talk from a number of Federal Reserve officials, who have expressed tolerance in the shortterm for rising inflation as the economy recovers from the COVID19 pandemic, has helped to buoy bullion.
Gold continues its fine form due to ongoing weakness in US dollar and bond yieldsthanks mainly to a dovish Federal Reserve, still insistent on keeping emergency stimulus measures running at full throttle, wrote Fawad Razaqzada, market analyst at ThinkMarkets, in a daily note.
Gold is headed for a monthly gain of 8 and its recent rise has helped…