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Gold gains as dollar, U.S. Treasury yields lose shine

Published 06/04/2021, 11:45 am
Updated 06/04/2021, 11:48 am
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April 6 (Reuters) - Gold prices rose on Tuesday, as a weaker dollar made bullion cheaper and more attractive for buyers outside the United States, while a pull-back in U.S. Treasury yields provided further support.

FUNDAMENTALS

* Spot gold XAU= was up 0.3% at $1,733.31 per ounce, as of 0117 GMT. Gold futures GCv1 were up 0.4% at $1,735.10 per ounce.

* The dollar slumped to an almost two-week low versus a basket of rival currencies, while U.S. Treasury yields also fell as investors paused recent selling of government bonds. USD/

* Weaker Treasury yields translate into a lower opportunity cost for holding bullion, which pays no return.

* But, data showing that a measure of U.S. services industry activity surged to a record high in March dimmed gold's safe-haven appeal. The data put Asian equities on track to rise after the S&P 500 and Dow indexes set records, taking some shine off the yellow metal. MKTS/GLOB

* U.S. Treasury Secretary Janet Yellen said on Monday that she is working with G20 countries to agree on a global corporate minimum tax rate. U.S. President Joe Biden on Monday defended his proposal to raise corporate taxes to help pay for his infrastructure spending plans, saying he was not worried the hike would harm the economy and that there was no evidence it would drive business abroad. The Federal Reserve should stick to its easy monetary policy to help support growth further, Cleveland Federal Reserve Bank President Loretta Mester said on Monday. Shares of Barrick Gold ABX.TO GOLD.N rose on Tuesday after the miner said Papua New Guinea Prime Minister James Marape announced an imminent agreement to reopen the disputed Porgera gold mine a year after it was shut. Silver XAG= rose 0.3% to $24.96, while palladium XPD= was down 0.3% at $2,657.66 per ounce. Platinum XPT= edged up 0.1% to $1,209.76 per ounce.

DATA/EVENTS (GMT) 0145 China

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