Title: Gold Up, Hits over One-Week High as Dollar Falls
May 23, 2022 01:18AM ET
Gold rose on Monday morning in Asia, hitting more than a one-week high. A weaker dollar continued to support the yellow metal from the dollar, although rising US Treasury bond yields limited gains.
Gold futures rose 0.62 per cent to $1,853.46 at 1:13am ET (5:13am GMT), with prices at their highest level since May 12 at $1,853.55 early in the session.
Geoffrey Halley, senior analyst at OANDA, told Reuters, "It remains to be seen whether gold has weathered the storm in the medium term or is simply reacting to a sustained decline in the US dollar.
The dollar, which normally moves inversely to gold, fell on Monday after its first weekly drop in almost two months. The yield on the benchmark 10-year US Treasury bond rose again after a three-season losing streak.
Before I get structurally bullish, I would like to see gold maintain its recent gains on the back of a stronger dollar rather than a weaker one.
The US Federal Reserve will also release the minutes of its latest meeting on Wednesday. St Louis Fed President James Bullard had already reiterated last week that the US Federal Reserve should raise interest rates to 3.5 per cent in 2022 in order to control inflation faster.
In Asia-Pacific, the Reserve Bank of New Zealand will release its policy decision on Wednesday, while the Bank of Korea's decision will follow a day later.
Reflecting sentiment, the SPDR Gold Trust said its stocks rose 0.69 per cent to 1,063.43 tonnes on Friday, up from 1,056.18 tons the previous day.
As for other precious metals, silver rose 0.4 per cent, platinum rose 0.3 per cent to $958.10 and palladium rose 0.7 per cent.