Gold Dips As Bond Yields Turn Higher

Gold Dips As Bond Yields Turn Higher

Gold Dips As Bond Yields Turn HigherLos Angeles CA, June 29 (Tangible Investments) — by James O’Dell — Precious metals prices edged sharply lower in early trading on Thursday after Gold dips as bond yields turn higher. Gold is down 0.63 percent to $1,240.90 an ounce after gaining $2.10 on Wednesday to close at $1,248.80.

Silver is down 1.13 percent to $16.59 an ounce after gaining $0.15 on Wednesday to close at $16.78 an ounce. The Gold/Silver ratio fell to 74.42. Platinum is down 0.76 percent to $911.00 an ounce. Palladium is down 0.35 percent to $852.00 an ounce.

Gold edged lower in early trading on Thursday after the Commerce Department reported stronger-than-expected economic growth in the first quarter. First quarter GDP was revised up to 1.4 percent, well above economists’ expectations of 1.2 percent.

General Picture Remains The Same

“With the third estimate for the first quarter, personal consumption expenditures (PCE) and exports increased more than previously estimated, but the general picture of economic growth remains the same,” said the report.

Gold dipped as bond yields turned higher amid signs that central banks may soon be scaling back ultra-loose monetary policies. Comments made Tuesday by ECB President Mario Draghi raised the prospect that ECB would be scaling back monetary stimulus.

Bank of England Governor Mark Carney spoke of a possible UK interest rate hike in coming months. Bank of Canada policymakers are also contemplating a rate hike next month.

“It is a battle between U.S. dollar weakness and expectations of central banks removing monetary stimulus – U.S. dollar weakness is supportive but the latter not,” said ABN Amro analyst Georgette Boele. “That’s why we’re staying close to $1,250.” The Euro is currently trading at a seven-month high against the dollar after making solid gains this week.

It’s important to protect your hard earned wealth during these times of economic and geopolitical uncertainty. At Tangible Investments, it doesn’t matter whether you’re new to precious metals or a seasoned veteran, you will always be dealing with top industry experts.

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