Gold slips as U.S. yields gain upper hand again
By Shreyansi Singh (Reuters) - Gold eased on Tuesday in choppy trading that earlier saw it climb as much as 1% as a surge in U.S. Treasury yields outweighed support from bets on higher inflation as Washington rolls out more stimulus. Spot gold was 0.2% lower at $1,840.91 per ounce at 11:49 a.m
By Shreyansi Singh
(Reuters) - Gold eased on Tuesday in choppy trading that earlier saw it climb as much as 1% as a surge in U.S. Treasury yields outweighed support from bets on higher inflation as Washington rolls out more stimulus.
Spot gold was 0.2% lower at $1,840.91 per ounce at 11:49 a.m. EST (1649 GMT). On Monday, prices touched their lowest level since Dec. 2. U.S. gold futures were down 0.6% at $1,840.60.
"We've still got COVID-19 raging and offsetting that is the vaccine rollout and looking out, in the springtime maybe the worst will be past," said Kitco Metals senior analyst Jim Wyckoff, adding that a rebound in the dollar index and rising yields remain a near-term negative for gold.
Democrat control of the U.S. Senate has raised bets for new U.S. fiscal stimulus, lifting the yield on benchmark 10-year notes to its highest since March.
Gold is generally considered a hedge against the inflation and currency debasement that can result from widespread stimulus. However, higher bond yields have challenged that status recently as they increase the opportunity cost of holding non-yielding bullion.
"There's going to be a big stimulus package that should be supportive for the gold market, it can not only stimulate demand but also prompt ideas of some problematic price inflation," Wyckoff added.
U.S. President-elect Joe Biden said Americans needed more economic relief from the COVID-19 pandemic and that he would deliver a plan costing "trillions" of dollars.
While gold was still vulnerable in the short term to gains in the dollar and yields, "the macro picture is still positive for gold," said Nicholas Frappell, global general manager at ABC Bullion.
Silver gained 1.4% to $25.28 an ounce. Platinum climbed 1.9% to $1,051.46, while palladium was down 0.1% at $2,369.62.
(Reporting by Shreyansi Singh and Sumita Layek in Bengaluru; Editing by Kirsten Donovan and Dan Grebler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.