Gold futures edged slightly higher Tuesday, gaining some ground a day after a rally in stocks helped to prompt some selling in bullion.
Gold for December delivery
GCZ19, +0.17%
rose $1.80, or 0.1%, to $1,513.40 an ounce, after the commodity gave up 0.8%, while September silver
SIU19, +0.27%
picked up 4 cents, or 0.2%, to $16.970 after the white metal shed 1.1% on Monday.
Precious metals were gaining some altitude as bond yields edged lower, providing some impetus for metals buying. The 10-year Treasury note yield
TMUBMUSD10Y, -3.21%
was down 3 about basis points to 1.567%. U.S. stocks were poised for slight opening gains, meanwhile.
Lower debt yields can make gold and other precious assets comparatively more attractive because metals don’t carry a coupon.
Gold has maintained its purchase above a psychologically important level at $1,500 an ounce, which many technical analysts view as a bullish signal.
“Gold bulls are engaged in a fierce battle to defend the $1500 psychological level as investors seek riskier assets,” wrote Lukman Otunuga, senior research analyst at brokerage FXTM.
Assets perceived as havens, like gold and bonds, have enjoyed a price run higher because investors have been worried that economic warnings signs point to a coming recession in the U.S., one that compels the Federal Reserve to further lower interest rates after a July 31 rate reduction.
Minutes from the Federal Reserve’s July 31 rate-setting committee will be watched when published Wednesday for signs that the central bank will be as dovish as the market is hoping. Wall Street is pricing in a nearly 100% chance of another interest rate cut when the Fed concludes its two-day policy meeting Sept. 18.
“Gold is seen finding ample support from a dovish set of Fed minutes and if Powell signals a September interest rate cut during his speech at Jackson Hole,” Otunuga wrote, referring to the gathering of central bankers in Jackson Hole, Wyo., which kicks off on Friday.
Source : MTV
