Gold Steady as Traders Weigh Dollar Retreat, Rising Bond Yields

Track the latest gold prices here.

Ranjeetha Pakiam

20 Jul 2022, 06:50 AM IST

<div class="paragraphs"><p>ABC Bullion one kilogram gold bars are displayed at the ABC Refinery smelter in Sydney, New South Wales, Australia. (Photographer: David Gray/Bloomberg)</p></div>

ABC Bullion one kilogram gold bars are displayed at the ABC Refinery smelter in Sydney, New South Wales, Australia. (Photographer: David Gray/Bloomberg)

(Bloomberg) -- Gold is holding near an 11-month low as investors weigh the US dollar’s retreat against rising Treasury yields amid improving sentiment in markets.

Bullion has been stuck in a narrow trading range, closing little changed since Friday, as a gauge of the greenback fell for three straight days in a sign of waning haven demand. A decline in Treasuries took the 10-year yield back above 3%.

Traders are awaiting more clarity on central bank action to tackle searing inflation. The European Central Bank may consider raising interest rates on Thursday by double the quarter-point it outlined just last month, according to people familiar with the situation. The Federal Reserve’s meeting on July 26-27 will also be closely watched.

Spot gold slipped 0.1% to $1,709.95 an ounce at 7:55 a.m. in Singapore. Prices dipped below $1,700 last week for the first time since August. The Bloomberg Dollar Spot Index was little changed after dropping 0.5% in the previous session. Silver, palladium and platinum were steady.

More stories like this are available on bloomberg.com