Gold prices edged lower in choppy trading on Thursday, pressured by rising U.S. bond yields that countered support from concerns over rising inflation and China’s troubled property sector.
Spot gold fell 0.1% to $1,780.61 per ounce by 1:38 pm EDT (1738 GMT). U.S. gold futures for December delivery settled down 0.2% at $1,781.9 per ounce.
SPDR CONTINUES SELL ON THURSDAY
“The Fed is going to taper and yields are going to make an all-time high so there is no reason for people to park their money in a non-yielding safety asset like gold,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
U.S. benchmark 10-year Treasury yields climbed to a five-month peak as a quickly recovering economy renewed questions about when the Federal Reserve will raise interest rates.
Bullion prices have traded between $1,759 and $1,788 this week. A weaker dollar on Thursday kept the metal close to the higher end of this range.
Two U.S. Federal Reserve officials said on Wednesday while the central bank should begin winding down its stimulus measures, it was too soon for interest rate hikes.
The Bank of England will be the first major central bank to raise interest rates in the post-pandemic cycle but economists polled by Reuters think the first hike will not come until early next year, later than markets are pricing in.
Russia’s gold reserves stood at 73.9 million troy ounces as of the start of October, the central bank said on Wednesday.
UBS analysts said in a note that rising inflation expectations and softening growth expectations could support gold prices in the next month or two.
Among other precious metals, silver fell 0.8% to $24.08 per ounce. Platinum slipped 0.5% to $1,044.83 per ounce.
Palladium fell 2.6% to $2,018.45 per ounce.
*UPDATE 1-Fed's Bostic sees higher prices into '22, then higher interest rates
Supply chain disruptions and labor market constraints, coupled with strong consumer demand, could keep inflation high into 2022, Atlanta Federal Reserve Bank President Raphael Bostic said on Thursday.
Fed could raise rates as soon as Q3 2022, Bostic says
* Fed Official Says Lingering Inflation Could Change Interest-Rate Outlook
Fed Governor Randal Quarles says he is watching for signs that higher demand will keep prices elevated even after bottlenecks abate
* Fed Official Says Lingering Inflation Could Change Interest-Rate Outlook
Fed Governor Randal Quarles says he is watching for signs that higher demand will keep prices elevated even after bottlenecks abate
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Climate change is an “emerging threat” to U.S. financial stability that regulators should address in their everyday work, a top U.S. regulatory panel said on Thursday, a first for the United States which has lagged other wealthy countries on tackling financial climate risks.
* BoE chief economist says UK inflation could top 5% -FT
*BOJ discussing phasing out pandemic support as economy reopens - sources
* COVID-19 Updates:
* Malaysia could reopen to international tourists in November, says tourism minister
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