Gold Breaks $1,800 Again as Traders Await Steer From Fed Minutes

  • Bloomberg
  • Commodities News
Gold Breaks $1,800 Again as Traders Await Steer From Fed Minutes
Credit: © Reuters.

(Bloomberg) -- Gold climbed above $1,800 an ounce again as investors took a risk-off turn before the release of Federal Reserve meeting notes that should bring fresh insight on U.S. monetary policy .

Minutes from the Fed’s June gathering will be combed for more clues on the bank’s thinking around rates, bond-purchasing and the economic outlook. Gold is eyeing its highest close in three weeks as softer inflation-adjusted Treasury yields boost the metal’s appeal following its worst month since 2016 in June.

“The risk off tone saw investor demand for the safe-haven asset rise,” Australia and New Zealand Banking Group Ltd. said in an emailed note. Stocks fell in Asia, tracking U.S. declines, amid renewed concerns about the economic recovery.

Gold has had a volatile year, with June’s steep decline driven by rising Treasury yields, a stronger dollar, and bets that governments will begin reining in pandemic stimulus. But lingering economic risks were highlighted in weaker-than-expected figures on the U.S. services sector.

Bullion rose 0.3% to $1,802.60 by 10:01 a.m. Shanghai time, for a 1.8% gain so far this month. Silver and platinum were flat, while palladium fell 0.4%

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© Bloomberg. A Twenty kilogram gold brick is handled by a worker at the ABC Refinery smelter in Sydney, New South Wales, Australia, on Thursday, July 2, 2020. Western investors piling into gold in the pandemic are more than making up for a collapse in demand for physical metal from traditional retail buyers in China and India, helping push prices to an eight-year high. Photographer: David Gray/Bloomberg

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