SINGAPORE: Gold prices dipped in Asian trade on Wednesday, as elevated Treasury yields and an uptick in risk appetite weighed on the safe-haven metal, while investors cautiously awaited US jobs data for cues on economic recovery and near-term Federal Reserve policy action.
Spot gold was down 0.3% at $1,894.46 per ounce, as of 0645 GMT, after hitting its highest since Jan. 8 at $1,916.40 on Tuesday.
US gold futures eased 0.3% to $1,899.60 per ounce.
“We saw some decent profit-taking as rising yields have sort of dulled the appeal for gold, primarily triggered after the US manufacturing survey data topped estimates,” Stephen Innes, managing partner at SPI Asset Management, said.
“There are some jitters, especially ahead of non-farm payroll. However, all inflation signals remain favorable for gold over the long term.”
“As for the precious metals’ outlook in the short-term, it depends on how global inflation data develops and how central banks, mostly the Fed, respond to it,” IG Market analyst Kyle Rodda said.
Australia’s Perth Mint posted a 10% drop in May gold coin sales.
Comments
Comments are closed.