Gold held firm near a three-month high on Monday after last week's miss on the U.S. jobs growth numbers weighed on the dollar and bolstered expectations that interest rates will remain low.
Macro Roundup (May 11)
CST
Source:SMM
The dollar languished at around 2-1/2 month lows on Monday as investors bet that rising inflation would erode the currency s value as the U.S. Federal Reserve maintains its loose monetary policy.
SHANGHAI, May 10 (SMM) This is a roundup of global macroeconomic news last night and what is expected today.
The dollar languished at around 2-1/2 month lows on Monday as investors bet that rising inflation would erode the currency s value as the U.S. Federal Reserve maintains its loose monetary policy.
The five-year breakeven inflation rate - which measures expectations of inflation five years out - reached its highest since April 2011 on Monday. The 10-year breakeven inflation rate - a measure of expectations of inflation in 10 years time - rose to its highest since March 2013.
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“What is missing from the recent rise in prices and would be required to revive the rally is the participation of safe-haven seekers,” Julius Baer analyst Carsten Menke said in a note.
Elsewhere, palladium rose 2% to $2,985.44 per ounce after hitting an all-time high last week on supply shortfall worries.
UBS raised its end-June and end-September price forecasts for the metal, used mainly in emission-reducing auto catalysts for vehicles, to $3,100 per ounce.
The bank expects the palladium market to be under-supplied by about 1 million ounces this year.
Silver edged 0.2% higher to $27.48 per ounce, while platinum climbed 1.5% to $1,267.86 per ounce. Both metals earlier reached a more than two-month peak. (Reporting by Eileen Soreng, Brijesh Patel and Arundhati Sarkar in Bengaluru Editing by Mark Heinrich)
UBS raises palladium price forecasts (Updates prices)
May 10 (Reuters) - Gold held firm near a three-month high on Monday after last week’s miss on the U.S. jobs growth numbers weighed on the dollar and bolstered expectations that interest rates will remain low.
Spot gold rose 0.4% to $1,836.89 per ounce by 1:44 p.m. EDT (1744 GMT), after touching its highest since Feb. 11 at $1,845.06. U.S. gold futures settled 0.3% higher at $1,837.60.
“The disappointing U.S. job number ultimately catalyzed a round of algorithmic short-covering,” said TD Securities commodity strategist Daniel Ghali.
Also supporting the precious metal was the return of discretionary capital flowing into gold alongside strong physical demand from China and India last month prior to Indian lockdowns, Ghali added.
Gold price on Tuesday jumped to Rs 50,620 for 10 gm from Rs 50,420 and silver price is trending at Rs 69,200 per kg, according to the Good Returns website. Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes. In New Delhi, the price of 22-carat gold is at Rs 46,400 per 10 gm, while in Chennai it fell to Rs 44,950. The rate in Mumbai was Rs 45,070 according to the website. The price of 24-carat gold in Chennai was Rs 49,030 per 10 gm. Gold rallied by Rs 411 to Rs 47,291 per 10 gram in the national capital on Monday reflecting strong buying in the global precious metal and rupee depreciation, according to HDFC Securities.