Gold rises, supported by lower US bond yields and “Corona” fears

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Gold prices rose on Monday, boosted by lower US bond yields and concerns about a rise in the Delta strain, as investors looked ahead to this week’s Federal Reserve Open Market Committee meeting.
Spot gold rose 0.3 percent to $1,806.80 an ounce. And US gold futures rose 0.3 percent to $ 1806.70, according to what was published by “Reuters”.
“There is no guarantee that we are out of this pandemic (Covid-19) and this will continue to maintain demand for the safe havens that support gold simply because that may keep central banks on the easing side,” said Stephen Innes, managing partner at SBI Asset Management. cash”.
Ince said investors are unlikely to take big positions in gold unless the COVID-19 situation worsens significantly.
The rise in Covid-19 infections continued at the weekend, as a number of countries in Asia and Europe struggled to control the outbreak of the most contagious mutated delta strain.
The yields on the benchmark 10-year Treasury bonds have fallen, reducing the opportunity cost of holding the non-yielding yellow metal.
Meanwhile, Asian stocks fell to their lowest levels since the beginning of this year as concerns about tightening regulations led to a decline in Chinese stocks, pushing investors towards safe haven assets such as gold.
Investors are watching the US central bank’s meeting on Tuesday and Wednesday. While no change in policy is expected, investors will be looking for indications of when the bank may begin to ease its accommodative monetary policies.
The dollar index has consolidated near its three-and-a-half-month peak, which it reached last week, reducing the attractiveness of gold.
As for other precious metals, silver gained 0.4 percent to $ 25.25 an ounce, palladium fell 0.4 percent to $ 2662.71, and platinum rose 0.3 percent to $ 1064.23.





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