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On Wednesday, both spot gold and US gold futures’ prices had skyrocketed more than a whacking 1.5 per cent as a steep drop in American Currency alongside US Treasury bond Yields amid mounting geo-political angsts over Ukraine issue, had underpinned the safe-haven yellow metals’ safe-haven allure.
On top of that, as Citi analysts were quoted saying in a client note that a gradual, but, steady recovery in global auto industry would spur up palladium’s demand in a near future, the industrial metal’s prices climbed as much as 7 per cent.
Palladium acts as an auto-catalyst in autos. Nevertheless, in the day’s sharp gain in the bullion’s prices was almost entirely prompted by growing tensions near Ukraine border, while a steep sell-off of US Treasury Yields by the Russian Central Bank, which had downsized its US Treasury bond notes holdings to a roughly $2.3 billion from a whopping $150 billion in 2017, had led to a nosedive in US bond notes with US 10-year Treasury Yields tumbling to 1.85 per cent a day after hitting a fresh two-year peak.
A faltering in US Treasury Yields, which often coincides with a teetering in the greenback as witnessed on Wednesday’s market round-off, had added to further impetus on gold futures’ prices. Nonetheless, on a technical viewpoint, until the next US Fed meet which is scheduled to take place on January 25-26, spot gold prices would unlikely to breach a key resistance level above $1,840 an ounce, suggested analysts.
Gold gobbles up lofty gains as US Treasury bond notes tumble
Citing statistics, in the day’s commodity market wind-down, spot gold skyrocketed 1.5 per cent to $1,840.91 an ounce, while US gold futures’ prices had settled 1.7 per cent higher to $1,843.20 an ounce.
Besides, palladium closes out the session 5.7 per cent higher to $2,006.20 an ounce after soaring as much as 7 per cent earlier in the day. Among other precious metals, silver soared 2.7 per cent to $24.08 per ounce and platinum gained 4.4 per cent to 1,024.50 an ounce.
