April 26, 2021

Gold ticks up as dollar stays on back foot

By ellen

BENGALURU (REUTERS) – Gold prices inched higher on Monday, helped by a soft dollar ahead of the US Federal Reserve policy meeting this week, while palladium held below a record peak scaled last week.

Spot gold was up 0.1 per cent at US$1,779.36 per ounce by 0127 GMT. US gold futures rose 0.1 per cent to US$1,780.10 per ounce.

Palladium was up 0.1 per cent at US$2,857.01 per ounce. It back foohad hit a record high of US$2,925.14 on Friday.

The dollar index nursed losses against its rivals, making gold less expensive for other currency holders.

US factory activity powered ahead in early April, while retail sales jumped to a record in March and hiring accelerated.

Investors poured US$16.4 billion into global bond funds and US$14.9 billion into money market funds in the week ended April 21, according to Refinitiv Lipper data, as concerns about a global rise in Covid-19 cases prompted moves towards safer assets.

A partnership between miners Newmont and Barrick in Chile said on Friday it would work with local communities to boost development of its Norte Abierto gold-copper project despite a setback in the courts this week.

Speculators raised their bullish positions in COMEX gold in the week to April 20, the US Commodity Futures Trading Commission said on Friday.

India’s physical gold demand faltered last week as strict restrictions to contain the spread of Covid-19 kept buyers away.

Zimbabwe’s gold production fell 30 per cent to 3.98 tonnes in the first quarter of this year, central bank data showed.

Silver rose 0.2 per cent to US$26.04 per ounce. Platinum was up 0.3 per cent at US$1,233.48.