Gold eases on global recovery hopes; weak US dollar limits losses

Shafaq News/ Gold prices edged lower on Tuesday as hopes of quick economic recovery lifted demand for riskier assets, although a weaker dollar and lower U.S. Treasury yields limited losses for the safe-haven metal.

Spot gold was down 0.1% at $1,878.90 per ounce by 0503 GMT.

U.S. gold futures fell 0.2% to $1,880.10 per ounce.

The dollar languished near four-month lows against major currencies, making gold cheaper for other currency holders.

U.S. Treasury long-dated yields fell to two-week lows after a few Federal Reserve officials affirmed their support to keep monetary policy accommodative for some time.

St. Louis Fed President James Bullard said he expects the inflation rate to be above 2% both this year and the next but several Fed officials, including Bullard, continued to support the central bank's policy in separate remarks.

Some investors view gold as a hedge against higher inflation.

Sentiment in wider financial markets remained upbeat.

Global real gross domestic product is projected to surge 5.7% in 2021, its strongest advance since 1973, while the U.S. economy will likely expand 6.7% this year, according to the latest economic forecasts for IHS Markit.

Singapore's economy expanded more than initially estimated in the first quarter, helped by stronger-than-expected manufacturing, official data showed on Tuesday.

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 1046.12 tonnes on Monday from 1042.92 tonnes on Friday.

Palladium rose 0.8% to $2,749.69 per ounce, silver fell 0.7% at $27.62 and platinum at $1,174.29.  

Source: Reuters, Metals prices updated by Shafaq News Agency