Gold Edges Higher as Weak Equities Boost Safe-Haven Demand
Gold traded higher mid-afternoon on Monday as stock markets fall and the dollar weakens, boosting safe-haven demand.
Gold for June delivery was last seen up US$46.50 to US$3,344.90 per ounce, sticking below the April 21 record high of US$3,425.30.
Most U.S. exchanges were lower Monday ahead of a busy week of corporate earnings, including results from Microsoft (MSFT), Meta Platforms (META), Amazon (AMZN) and Apple (AAPL).
Gold "continues to consolidate, and questions are being raised about its ability to avoid a deeper correction amid rising risk appetite elsewhere. It is worth noting that ETF investors turned net sellers last week, joining hedge funds in the futures market who, in the week to 22 April, sold gold for a fifth week, reducing their net long to a 13-month low", Saxo Bank noted.
The dollar fell, with the ICE dollar index last seen down 0.47 points to 99.00. Treasury yields narrowed, with the U.S. two-year note last seen paying 3.699%, down 4.5 basis points, while the yield on the 10-year note was down 1.4 points to 4.226%.
Source: MT newswires
