3 Minutes to Read (Updates with latest price movement, adds comments) * Ten-year Treasury yields in the United States are at a four-month low* Palladium is up nearly 2.6 percent. Reuters, 7 July – On Wednesday, gold rose beyond $1,800 an ounce as U.S. Treasury yields fell after minutes from the Federal Reserve’s June meeting revealed that officials did not believe the’substantial progress’ aim on economic recovery had been attained. Spot gold was up 0.4 percent to $1,804.16 per ounce by 2:36 p.m. EDT (1836 GMT) after the minutes were released, having achieved its highest level since June 17 at $1,814.78 on Tuesday. Gold futures in the United States finished 0.4 percent higher at $1,802.10 per ounce. “The minutes were roughly in line with market expectations, rather than delivering any hawkish surprises,” said Suki Cooper, an analyst at Standard Chartered. Gold rose above $1,800. “The threshold for tapering has yet to be met, and the rise in inflation mostly reflects temporary reasons,” Cooper explained, adding that the resulting weakness in yields has aided gold’s advance. Last month, Fed officials thought that significant further progress on the economic recovery “had yet to be met,” though they expected growth to continue. The US Federal Reserve’s surprising hawkish stance last month prompted gold to fall 7% in June. Meanwhile, 10-year Treasury yields fell to their lowest level in almost four months. The potential cost of owning non-interest bearing bullion increases when interest rates in the United States rise. In a note, ANZ analysts stated that rising uncertainty about monetary policy, inflation, and the likelihood of equities market volatility should favor safe-haven gold demand. “In recent months, central banks have increased their gold purchases, mitigating some of the physical demand losses in Q2 2021.” Silver held steady at $26.14 per ounce, while platinum fell 0.5 percent to $1,086.32 and palladium rose 2.6 percent to $2,865.27. (Eileen Soreng and Arpan Varghese in Bengaluru contributed reporting; Barbara Lewis, Pravin Char, and Andrea Ricci edited the piece.)/n
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