Gold Futures Snap 4-day Winning Streak, Settle Slightly Lower

0
37

Gold futures settled lower on Tuesday, snapping a four-day winning streak, as an increase in U.S. bond yields dimmed the demand for the safe-haven yellow metal.

The yield on 10-year U.S. Treasury Notes rose to 1.62%.

The dollar’s continued weakness helped limit gold’s downside. The dollar index, which fell to 89.98, recovered to 90.13, down by about 0.1% from the previous close.

Gold futures for June ended down by $1.50 or about 0.1% at $1,836.10 an ounce.

Silver futures for July closed higher by $0.175 at $27.667 an ounce, while Copper futures for July settled at $4.7620 per pound, up $0.0460 from the previous close.

Investors look ahead to U.S. inflation data and speeches from Fed officials this week to see how authorities are likely to respond to receding risks posed by the coronavirus in some major economies.

The U.S. CPI report due Wednesday is forecast to show prices continued to increase in April.

As inflation worries mount, it is feared that the Federal Reserve might start reining in its ultra-loose monetary policy sooner than expected.

Chicago Federal Reserve President Charles Evans told CNBC on Monday that he would be comfortable if inflation ran a little hot for a while. Governor Lael Brainard will have a chance to reinforce that message later today.

The material has been provided by InstaForex Company – www.instaforex.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here