· Gold prices climbed on Monday to hover near a 4.5-month high, supported by a weaker U.S. dollar and growing inflationary pressure, while a slide in cryptocurrencies further lifted the safe-haven metal’s appeal.
· Spot gold was up 0.3% at $1,884.91 per ounce by 0518 GMT. Last week, gold prices hit their highest level since Jan. 8 at $1,889.75.
· U.S. gold futures rose 0.5% to $1,886.20 per ounce.
· “The U.S. dollar index remain relatively weak and the manufacturing and service PMI’s from the United States and Europe actually raised the prospect of inflation in months to come,” Margaret Yang, a strategist at DailyFX said.
· “Recent slide in cryptocurrencies also boosted the appeal of gold as an alternative investment asset. Gold’s upward momentum is very strong and it is likely to challenge a key psychological level at $1,900 in the days to come.”
· The dollar stood near its lowest levels in three months against the resurgent euro and other European currencies, making gold cheaper for other currency holders.
· Rising U.S. inflationary risks have spooked markets after data showed rise in consumer prices and pick up in factory activity, lifting gold’s appeal as an inflation hedge.
· Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6% to 1042.92 tonnes on Friday. Speculators raised their net long positions in COMEX gold in the week ended May 18.
· Further contributing to gold’s move, bitcoin fell 13% on Sunday, sending it down about 50% from the year’s high after Beijing stepped up its efforts to crack down on bitcoin mining and trading.
· Spot gold looks neutral in a range of $1,875 to $1,893 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.
· Elsewhere, palladium jumped 0.7% to $2,802.60 per ounce, silver gained 0.5% to $27.65, and platinum climbed 0.3% to $1,170.28.
· U.S. Senate Republican sees short window for infrastructure deal
U.S. Senate Republicans and the White House could have as little as a week to 10 days to overcome their differences on infrastructure and strike a deal to revitalize America's roads and bridges, a top Republican said on Sunday.
· Japan opens mass vaccination sites for elderly ahead of Olympics
· Taiwan says considering extending COVID alert level
Taiwan is considering extending its second highest COVID-19 alert that was due to expire at the end of the week, the health minister said on Monday, as he reported a further increase in domestic cases despite tighter social restrictions.
· Australia's Victoria state reports four COVID-19 cases, source unknown
Australia's second most populous state of Victoria reported on Monday four new COVID-19 infections, all in the city of Melbourne, the first cases of community transmission in the state in nearly three months.
Thai
Eng