1 week ago
Gold Extends Five-Day Gain as Oil Drop Eases Inflation Fears
Gold prices stayed high for a fifth straight day.
Investors bought gold as a way to protect their money from concerns about government debt and inflation.
US government bond yields fell, which can make gold more attractive.
Oil prices also dropped as Iran and Oman discussed ways to reopen shipping routes near the Strait of Hormuz.
Cheaper oil may reduce inflation pressure.
That could make it less necessary for the Federal Reserve to raise interest rates.
Gold does not pay interest, so high interest rates can make it less appealing.
Investors are watching a US inflation report due Wednesday.
They are also waiting for Federal Reserve Chair Kevin Warsh’s speech on Friday.
Gold traded near $4,660 an ounce after reaching a three-month high in the previous session.
Bullion has gained more than 7% over the past week as US Treasury buybacks revived interest in gold.
US Treasury yields fell five to seven basis points across the curve as oil prices declined.
Iran and Oman discussed a temporary joint maritime corridor that could allow some regional shipping to resume.
Gold rose 0.1% to $4,659.52 an ounce, while silver gained 0.3% in Singapore trading.
- Who
- Gold investors, the Federal Reserve, Iran, Oman, and US Treasury officials are central to the report.
- What
- Gold held a five-day gain as lower oil prices and Treasury yields eased inflation concerns.
- Where
- Gold was trading in Singapore, while Iran-Oman discussions concerned shipping near the Strait of Hormuz.
- When
- The latest trading was reported Tuesday; the US inflation report is due Wednesday and Kevin Warsh’s speech is scheduled for Friday.
- Why
- Lower oil prices and bond yields reduced concerns about inflation and interest-rate increases, while Treasury debt buybacks supported demand for gold.
Key facts
- Gold price
- $4,659.52 an ounce, up 0.1% at 7:35 a.m. Singapore time
- Recent performance
- Gold has gained more than 7% in the last week
- Recent high
- Gold reached a three-month high in the previous session
- Silver price
- $68.83 an ounce, up 0.3%
- Treasury yields
- Yields fell by five to seven basis points across the curve on Tuesday
- Shipping discussions
- Iran and Oman discussed a temporary joint maritime corridor
- Upcoming data
- The US Personal Consumption Expenditure Index is due Wednesday
Sources
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