MTECHTIPS:-Gold hits 8-week low as US bond yields spike


MTECHTIPS:-Gold hits 8-week low as US bond yields spike

MTECHTIPS-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

MTECHTIPS-Apply For 2 Days Free Trails Equity & Commodity Tips

WWW.MTECHTIPS.COM

07489294118-119

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s