Breaking News
/Free Sign Up
 0

Gold hits 8-week low as US bond yields spike

CommoditiesJul 03, 2017 01:43PM ET
2
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Gold fell to eight-week lows on Monday

Investing.com – Gold prices slumped lower on Monday, pressured by a sharp uptick in U.S. bond yields in the wake of upbeat manufacturing activity suggesting that U.S. economic growth remained robust.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $21.81, or 1.76 %, to $1220.47 a troy ounce.

Gold is set to make a negative start to the month, after better than expected manufacturing data fuelled U.S. rate hike expectations, underpinning a move higher in U.S. bond yields, lessening demand for non-interest bearing gold.

The Institute for Supply Management said its manufacturing index rose to 57.8 last month from 54.9 in May. The measure now stands at its highest level since August 2014.

The upbeat manufacturing data lifted U.S. 10-Year to a two-month high of 2.353, spurring a rally in the greenback against its rivals, adding further pressure on the precious metal.

Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

The move higher in the greenback weighed on commodities across the board, as silver futures dropped 2.79%% to $16.105, a troy ounce while platinum futures lost 2.07% to $907.25.

Copper traded at $2.691, down 0.74%, while natural gas, dipped by 1.94% to $2.976.

Gold hits 8-week low as US bond yields spike
2
 
Comments (2)
2

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I Agree
Write your thoughts here
 
Are you sure you want to delete this chart?
Delete Cancel
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
Replace Cancel
1000
Comment Guidelines
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Hiren Patel
GarasondiaHiren Jul 04, 2017 12:57AM ET
Save
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Block User
see yesterdays buy call in xau and xag.........and wait blw tgts in this week.mm..and tgt1 $1244+$16.666.and tgt2 $1255+$16.888.and tgt3 $1266+$17.111.mm--tgt in this week
Reply
0 0
Vishal Jain
Vishal Jain Jul 04, 2017 12:57AM ET
Save
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Block User
Stop at
Reply
0 0
 
Are you sure you want to delete this chart?
Delete Cancel
 
Post
 
Replace the attached chart with a new chart ?
Replace Cancel
1000
Comment Guidelines
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Cancel Attach
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Confirm Block Cancel
Ok
Report this comment

I feel that this comment is:

Submit
Comment flagged

Thank You!

Your report has been sent to our moderators for review
Close
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email