div classBodysc17zpet90 cdBBJodivpBy Bharat Gautamp
pReuters – Gold edged up on Monday from a more than threemonth trough hit in the previous session, as lower U.S. Treasury yields kept demand for zeroyield bullion afloat above the key psychological support level of around 1,800 per ounce.
pSpot gold was up 0.1 at 1,812.15 per ounce, as of 0227 GMT. U.S. gold futures gained 0.1 to 1,809.80.p
p“With 1,800 being such a big round number, it‘s natural for it to provide some level of support as some traders try to be brave and buy a dip, whilst others close out profitable shorts,” City Index’s senior market analyst Matt Simpson said.p
pMarking their fourth straight weekly decline, gold prices fell more than 1 on Friday to the lowest since Feb. 4 at 1,798.86 per ounce, before closing at 1,811.15. p
p“But its not looking great for gold bugs right now. Even if we do see a bounce from 1,800, the momentum clearly favours a further downside,” Simpson said.p
pThe dollar started the week just off a 20year high against peers, as investors sought safety due to fears about global growth, and continued to make rival safehaven gold less attractive for buyers holding other currencies. p
pHowever, benchmark U.S. 10year Treasury yields fell, buoying demand for noninterest bearing gold.p
pInflation will need to move lower for “several months” before Federal Reserve officials can safely conclude it has peaked, Cleveland Fed president Loretta Mester said Friday, adding she would be ready to consider faster rates hike by the September Fed meeting if the data do not show improvement. p
pAlthough seen as an inflation hedge, bullion is sensitive to rising U.S. shortterm interest rates and bond yields, which raise the opportunity cost of holding it. p
pSpot silver was down 0.1 at 21.06 per ounce, platinum was unchanged at 938.46, and palladium rose 0.3 to 1,949.88.
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