News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Gold steady as higher yields, dollar counter inflation risks

01/16/2022 | 11:24pm EDT

(Adds comments, updates details and prices)

* Geopolitical tensions positive for gold prices - analyst

* Spot gold remains neutral in $1,815-$1,830/oz range - technicals

* U.S. 10-year Treasury yields hover close to two-year peak

Jan 17 (Reuters) - Gold prices held steady on Monday as market participants gauged the global economic policy outlook, with inflation-based demand for bullion countering hawkish comments from U.S. Federal Reserve officials which lifted the dollar and Treasury yields.

Gold is considered an inflationary hedge, but the metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.

Spot gold rose 0.2% to $1,820.80 per ounce by 0807 GMT. U.S. gold futures rose 0.3% to $1,821.20.

"Gold has been locked in sideways consolidation for a while now, the market is still undecided on where it's going," OCBC Bank economist Howie Lee said. "There's still some lingering demand as an inflation hedge."

U.S. 10-year Treasury yields hovered near two-year highs scaled in the previous week.

Traders await speeches from Fed officials this week ahead of the central bank's Jan. 25-26 policy meeting, but there have been more than enough hawkish comments to see the market almost fully price in a first interest rate hike for March and rates of 1.0% by the year-end. <0#FF;>

"The potential 'black swan' event of whether or not Russia invades Ukraine and then if China makes a simultaneous move on Taiwan is adding upside pressure to the gold price," said Michael Langford, director at corporate advisory AirGuide.

"This ongoing uncertainty will see gold prices stabilise around current levels until more clarity exists."

The dollar index held on to Friday's gains, as investors braced for the Fed meeting and raised bets it will chart a year ahead containing several rate hikes.

Spot gold remains neutral in a range of $1,815 to $1,830 per ounce, and an escape could suggest a direction, according to Reuters' technical analyst Wang Tao.

Spot silver gained 0.3% to $23.02 an ounce, platinum rose 0.1% to $970.82, and palladium was up 0.7% to $1,890.29.

(Reporting by Asha Sistla in Bengaluru, additional reporting by Seher Dareen; Editing by Uttaresh.V, Sherry Jacob-Phillips and Ed Osmond)

ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 0.79% 0.703 Delayed Quote.-4.31%
BRITISH POUND / US DOLLAR (GBP/USD) 1.01% 1.24466 Delayed Quote.-9.40%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.23% 0.78 Delayed Quote.-2.04%
DOW JONES FXCM DOLLAR INDEX -0.36% 12751.28 Real-time Quote.5.39%
EURO / US DOLLAR (EUR/USD) 0.36% 1.04756 Delayed Quote.-8.55%
GOLD 0.05% 1827.5 Delayed Quote.-0.89%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.30% 0.01289 Delayed Quote.-3.88%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.81% 0.6362 Delayed Quote.-7.99%
ON SEMICONDUCTOR CORPORATION -1.83% 55.15 Delayed Quote.-18.80%
PALLADIUM 0.30% 2026 Delayed Quote.2.73%
S&P GSCI GOLD INDEX 0.66% 1066.9 Real-time Quote.-0.75%
SILVER 0.67% 21.73 Delayed Quote.-8.91%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.67% 64.301 Delayed Quote.-13.93%
Latest news "Economy & Forex"
06:10aRussian crude production plunges by nearly 9% in April, OPEC+ data shows
06:09aPennsylvania, North Carolina midterm primaries latest test of Trump's sway
06:08aHome Depot raises annual sales forecast on steady demand
06:07aThai cabinet approves $92 billion draft budget bill
06:02aSpain's March trade deficit soars 11-fold on oil, gas prices
06:02aHome Depot raises full-year sales forecast
06:02aUK unemployment hits 48-year low, pushing up pay
06:01aEuro zone Q1 GDP growth rate revised upward to end-2021 pace
06:00aKremlin says G7 using Russia's reserves for Ukraine would be 'outright theft'
05:59aFactbox-Power of Trump's endorsements faces test in 12 key U.S. midterm primaries
Latest news "Economy & Forex"