PRECIOUS-Gold nears $1,800 level as U.S. dollar, yields lose ground

2021-04-22T07:47:17.000000Z

Shafaq News/ Gold prices steadied near a two-month high on Thursday, a whisker away from the key $1,800 threshold as the U.S. dollar faltered with easing Treasury yields, while supply concerns kept palladium anchored near last session's record peak.

Spot gold XAU= was little changed at $1,790.88 per ounce by 0543 GMT, after hitting its highest since Feb. 25 at $1,797.67. U.S. gold futures GCv1 eased 0.1% to $1,791.20 per ounce.

"What's obviously underpinning the upswing (in gold) is the dynamic in U.S. Treasuries ... which is sort of pushing lower in the very short term," said IG Market analyst Kyle Rodda, adding that a drop below 1.5% in yields could help push gold above $1,800, a key psychological level.

The benchmark 10-year U.S. Treasury yield US10YT=RR was pinned below 1.6%, reducing the opportunity cost of holding non-yielding bullion. The dollar index .DXY held near multi-week lows against most major currencies. USD/ US/

"(Gold) Prices could easily move above the $1,800 level in the next couple of days," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.

"There is still a lot of uncertainty in global markets. COVID-19 cases continue to be at record highs in a lot of countries and there is this whole revaluation about global growth prospects that should help safe haven assets."

Market participants also awaited a European Central Bank meeting due later in the day.

Palladium XPD= eased 0.2% to $2,871.33 an ounce, having surged to an all-time high of $2,891.20 per ounce on Wednesday.

"Long running tightness in the market is fuelling the metal's rise as auto demand remains strong," HSBC analysts wrote in a note, adding that they expect prices to be volatile.

The auto-catalyst metal has surged nearly 25% since Russia's Nornickel GMKN.MM , the world's largest producer of the metal, partly suspended operations at two of its mines in late February.

Silver XAG= eased 0.6% to $26.42 per ounce and platinum XPT= slipped 0.2% to $1,211.26.

Source: Reuters

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