Valuable gold buoyed by COVID-19 Delta variant fears
Spot gold was up 0.1% at $1,730.31 per ounce by 0637 GMT, and U.S. gold futures rose 0.1% to $1,732.70
Aug 11 – Gold rates inched high on Wednesday, as worries over a flow in cases of the Delta coronavirus variant overlook pressure from a stronger dollar and bond yields, with investors awaiting U.S. inflation data due later in the day.
Spot gold was up 0.1% at $1,730.31 per ounce by 0637 GMT, and U.S. gold futures rose 0.1% to $1,732.70.Lingering Delta virus concerns are offering some safe-haven inflows into gold in the Asian period, but gold is still struggling to recover from the flash crash on Monday,” said Stephen Innes, managing partner at SPI Asset Management.Obviously, with the Federal Reserve communication taking a more hawkish turn, coupled with the strong U.S. non-farm payrolls data, markets are a little bit nervous about taking it (gold) higher.
Risk sentiment in wider financial markets remained subdued, as coronavirus cases in several Asian countries continued to surge, threatening the economic outlook and driving some investors towards safe-haven assets.But the dollar index held firm near a three-week high against its rivals, while U.S. Treasury yields hit their highest levels since mid-July.
Chicago Fed President Charles Evans on Tuesday said that the current inflation spike shouldn’t push the central bank to tighten monetary policy prematurely, with more months of labour data needed before any changes.Silver gained 0.1% at $23.34 per ounce. Platinum rose 0.7% to $1,001.82, and palladium climbed 0.2% to $2,645.82. (Reporting by Brijesh Patel in Bengaluru; editing by Uttaresh.V and Amy Caren Daniel)