COMEX Gold Flips Back, Rising Treasury Yields Weigh
Published on Mar 08, 2021 12:41
COMEX Gold futures slumped under $1700 per ounce mark in last session amid a sustained rise in US 10 year treasury yields and a volatile but strong upmove in equities. The metal fell after sharply last week the US Federal Reserve Chairman Jerome Powell did not comment on any changes in Fed`s asset purchases in response to the recent surge in bond yields. Gold approached fresh eight month low, wiping out nearly $400 from its life highs. Meanwhile, the US Senate has passed $1.9 trillion relief plan on Saturday. The House of Representatives - controlled by US President Joe Biden`s Democrats is likely to approve it on Tuesday. This can potentially put a floor under Gold though US 10 year bond yield- which approached around 13 month high of 1.60% could limit the gains. The World Gold Council (WGC) noted in a latest update that global gold exchange traded funds or ETFs lost 84.7 tonnes (t) (-US$4.6 billion, -2.0% AUM) in February, marking outflows for the third time in four months, and the seventh worst historical monthly holdings loss. Global assets under management (AUM) for Gold ETFs now stand at 3,681t (US$207 billion), hitting levels last seen in June 2020.
Powered by Capital Market - Live News