Gold rises over 1% as retreat in dollar, yields boost allure
By Sumita Layek (Reuters) - Gold prices jumped more than 1% on Monday, with the rally spilling over into other precious metals as well, driven by a retreat in the dollar and U.S. Treasury yields.
By Sumita Layek
(Reuters) - Gold prices jumped more than 1% on Monday, with the rally spilling over into other precious metals as well, driven by a retreat in the dollar and U.S. Treasury yields.
Spot gold was up 1.4% at $1,792.41 per ounce by 12:13 p.m. EDT (1613 GMT), after hitting its highest since April 22 at $1,797.75. U.S. gold futures advanced 1.4% to $1,792.90.
"A combination of bond yields remaining tame, the dollar under pressure, the amount of fiscal and monetary stimulus in this market ... all of those factors continue to drive gold and silver prices higher," said David Meger, director of metals trading at High Ridge Futures.
The dollar index slipped 0.3%, making gold cheaper, while benchmark U.S. 10-year Treasury yields also retreated, reducing the opportunity cost of holding non-interest bearing gold.
Gold also found support from data showing U.S. manufacturing activity grew at a slower pace in April.
Investors now await Friday's labour market numbers to gauge U.S. economic health.
But strong economic data can also push gold higher as it means inflation will rise, said Michael Matousek, head trader at U.S. Global Investors.
"We need to see gold get above the $1,800 level and sustain it for a little bit, and then it could be off to the races for $2,000."
Gold is considered a hedge against inflation.
Elsewhere, auto catalyst metal palladium rose 0.9% to $2,961.81 per ounce, after hitting an all-time high of $3,007.73 on Friday.
While output cuts by the automobile sector necessitated by a shortage of semiconductor components could reduce palladium demand this year, the impact would be relatively small compared with production losses from Russia's Nornickel, with a sizeable market deficit still expected, Heraeus Precious Metals said in a note.
Silver rose 3.7% to $26.86 per ounce, after hitting $26.95, its highest mark since March 1. Platinum rose 2% to $1,222.53.
(Reporting by Sumita Layek in Bengaluru; additional reporting by Nallur Sethuraman and Arpan Varghese; editing by Amy Caren Daniel, Pravin Char and Jonathan Oatis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
(Reuters) -Ximalaya, backed by China's Tencent Holdings, filed for an initial public offering (IPO) in the United States on Friday, cashing in on growing demand as more people tune in to podcasts while staying at home during the pandemic. China's Qiniu Ltd, a cloud-based platform-as-a-service provider backed by Alibaba Group Holding Ltd, also filed paperwork for a U.S. IPO
By Greg Roumeliotis (Reuters) - Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive Will Wyatt, has amassed a stake in Turtle Beach Corp and is pushing the maker of gaming headsets to explore a sale, people familiar with the matter said on Friday. The move represents a bet that Turtle Beach could attract acquisition interest from peers such as Corsair Gaming Inc and GN Store Nord A/S, as the video game market continues to benefit from people looking for entertainment options at home during the COVID-19 pandemic
By John McCrank, Saqib Iqbal Ahmed and Lawrence Delevingne NEW YORK (Reuters) - Recent volatility in a handful of so-called meme stocks is putting the spotlight back on the tussle between individual investors and short sellers, months after a wild ride in GameStop captivated Wall Street’s attention. Stocks that have notched big swings this month include laser-manufacturer MicroVision Inc, a favorite on Reddit’s popular WallStreetBets forum, whose shares have risen as much as 170% since April 20 before tumbling in recent days