Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Gold nudges up as dollar softens, eyes on Fed meeting

07/27/2021 | 12:48pm EDT
FILE PHOTO: Gold bullion is displayed at GoldSilver Central's office in Singapore

(Reuters) - Gold ticked up on Tuesday, as the dollar softened and U.S. real yields plunged to a record low, though gains were limited by investor caution ahead of a Federal Reserve policy meeting that could provide details on stimulus tapering.

Spot gold rose 0.1% to $1,799.40 per ounce by 12:28 pm EDT. U.S. gold futures were flat at $1,799.50.

The dollar index slipped 0.1%, lowering gold's cost for holders of other currencies.

Providing a further boost to the metal, the yield on 10-year Treasury inflation-protected securities (TIPS), hit a record low of -1.147%.

The precious metal, however, has been confined to a tight trading range in recent weeks after briefly crossing $1,830, failing to capitalise on subdued U.S benchmark treasury yields.

"Gold has to be looked at from a cross asset perspective and not just from bonds, and with strong returns in equity markets that impedes capital flows into gold," said Bart Melek, head of commodity strategies at TD Securities.

"To breakout higher, there has to be some negativity and that is right now only being manifested in bond yields," Melek said, while adding that weaker economic readings ahead would likely push gold prices higher again.

Investors are keeping a watch on how the Fed balances accelerating inflation with the increased economic threat of the Delta coronavirus variant, in its policy meeting that begins later in the day.

Lukman Otunuga, senior analyst at FXTM, also said in a note that gold could remain range-bound until the Fed meeting.

"A hawkish central bank could deliver a heavy blow to zero-yielding gold. However, a meeting filled with doves may boost the precious metal's allure, possibly sending prices higher."

Elsewhere, silver slipped 2.5% to $24.53 per ounce, platinum shed 1.9% to $1,043.65 and palladium fell 2.2% to $2,598.45, having earlier hit a one-week low of $2,590.

(Reporting by Nakul Iyer in Bengaluru; Editing by Anil D'Silva and Chris Reese)

By Nakul Iyer


© Reuters 2021
Latest news "Economy & Forex"
06:10aIndonesia court finds president negligent in air pollution lawsuit
RE
06:02aUK's M&S to close 11 stores in France after Brexit
RE
06:00aFrance's Thales keeps 2021 goals after contract blow
RE
06:00aWITH OR WITHOUT YOU - 'EXCHINA' IN VOGUE? : Mike Dolan
RE
05:58aSWISS WATCHDOG FINMA : banks' syndicated loans falling behind LIBOR transition
RE
05:57aHungary eases repayment rules for some loans under moratorium
RE
05:55aUK's Virgin Media-O2 to launch IPTV by end of the year
RE
05:51aANALYSIS : India may corner nearly half of global rice trade as exports soar to record
RE
05:51aSingapore fuel oil stocks drop despite net imports rising to over 1-year high
RE
05:47aMalaysia says auditor KPMG to pay $80 million in 1MDB settlement
RE
Latest news "Economy & Forex"