US Treasury Yields Stayed Firm, Little Affected Gold Prices

Gold prices increased by 0.1% yesterday, closing at 71,654, as investors became cautious ahead of important economic data that could affect the Federal Reserve’s interest rate choices. U.S. Treasury yields also stayed steady. According to recent data, consumer spending increased somewhat in May, while U.S. prices remained steady.

The Federal Reserve is currently seen by the market as having a 63% chance of lowering interest rates in September and maybe again in December. The comments from Fed Chair Jerome Powell, the minutes from the Fed’s most recent policy meeting, and the U.S. nonfarm payrolls statistics that are expected later this week are all being watched by investors.

According to the Hong Kong Census and Statistics Department, international gold imports via Hong Kong to China decreased by 38% in April over March, amounting to 34.6 metric tonnes. Higher prices and some purchasers delaying purchases in expectation of a drop in import duty in the 2018 budget kept Indian demand for gold muted.

Indian dealers were offering savings of up to $9 per ounce over official domestic pricing, as opposed to the $13 savings of the previous week. Premiums above foreign spot prices in China were between $12 to $23 per ounce, marginally less than the $18 to $25 range of the previous week. Bullion was either sold at par or with a $0.5 premium in Japan, par to $2.10 in Singapore, and par to $2 in Hong Kong for premiums.

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