Exact metal-gold rebounds in US Treasury yields to multi-week highs

Por Sethuraman NR

April 20 (Reuters) – Gold prices fell slightly on Tuesday from an increase in US Treasury yields, although a weaker dollar limited losses and kept bullion near the seven-week high it had played in the previous session.

* At 0945 GMT, spot gold was down 0.2% at $ 1,766.65 an ounce, after Monday’s $ 1,789.77, its highest level since February 25. US gold futures for June delivery were down 0.16% at $ 1,767.70 an ounce.

Peter Fertig, analyst at Quantitative Commodity Research, said, “The yield on the US Treasury has risen again and it is weighing on gold. This is affecting the positive impact of the weakening US dollar.”

* Yields on the 10-year US Treasury rose more than 1.6% after hitting a five-week low last year, raising the cost of the gold opportunity, which does not yield interest.

* Gold, which is also considered a hedge against inflation, has lost more than 6% this year as high yields have monitored the appeal of the gold metal. Bullion was up 25% on last year.

* A weaker dollar has offered some support for gold. The dollar is about seven weeks ahead of its rivals, making gold less expensive for holders of other currencies.

Gold rose 1.9% after December last week, its biggest gain since mid-December, but its inability to break above the resistance level of $ 1,785 pushed it back into the range of $ 1,744 to $ 1,758 per ounce. Rea, Reuters analyst Wang said Tao.

* Global stocks were back from record highs on Tuesday, as high sovereign bond yields and rising worldwide COVID-19 cases made investors question stock prices.

* Among other precious metals, silver was up 0.05% at $ 25.82 an ounce, palladium was down 1% at $ 2,784.11, and platinum was down 0.49% at $ 1,200.32.

(Report of Nallur Sethuraman in Bengaluru; Edited in Spanish by Ricardo Figuero)