Gold Stays Supported In Asia

Published on Mar 19, 2021 13:14

Gold stayed supported in Asia after hitting three week high above $1750 per ounce yesterday. The metal rose this week following a tepid undertone in the US Fed`s monetary policy statement but soaring yields on US treasuries capped upside for the metal. The US 10 year bond yields surged to a near 14 month high above 1.70%. However, volatile equities have capped losses for Gold. India`s economy, estimated to contract by 6.9% in 2020 due to the coronavirus pandemic, is expected to record a stronger recovery in 2021 and grow by 5%, according to a UN report which said the country`s current fiscal year budget points to a shift towards demand-side stimulus, with an uptick in public investment. Such an upbeat assessment for local economy is likely to support retail Gold demand, particularly after the latest tumble in the spot prices.