Gold prices finish higher amid a retreat in bond yields

Gold futures ended more above Tuesday, getting a pull from a retreat in Treasury yields, but prices disappointed to recoup their loss from the prior session.

Gold prices have risen after marking a double-bottom March 30, stated Adam Koos, president of Libertas Wealth Management Group, leading to a chart pattern that signals a possible bullish reversal in prices.

Koos attached gold’s rise since late March to a drop in the U.S. dollar over the corresponding period, as well as a retreat in interest rates that had shifted highly overbought and a long-in-the-tooth U.S. stock market, which is available for a pullback.

The 10-year Treasury note’s yield BX: TMUBMUSD10Y was falling at about 1.56%. A decline in government debt yields can increase appetite for precious metals, which don’t offer a coupon.

The moves for bullion also appeared as the dollar was up at 91.25, but trading down for the week and month so far, as measured by the ICE U.S. Dollar index DXY, 0.12%. Instability in the buck can make dollar-priced commodities more appealing for overseas purchasers.

June gold GC00, 0.46% GCM21, 0.46% increased $7.80, or 0.4%, to finish at $1,778.40 an ounce, after dropping 0.5% a day ago. Prices on Friday had finished at $1,780.20, their highest since Feb. 24.

Meantime, silver for May delivery SIK21, 1.32%, ended at $25.84 an ounce, little changed for the session, after falling 1% on Monday.

The moves for precious metals come between renewed concerns about a re-emergence of coronavirus in parts of the globe, including India, where the outbreak has forced the country to the second-highest infection rate in the world.

Whirling out the action on Comex, May copper HGK21, 0.82% declined by 0.6% to $4.21 a pound. July platinum PLN21, -0.18% lost almost 0.9% to $1,196.30 an ounce, and June palladium PAM21, 1.09% decreased by 2% to $2,757.40 an ounce after ending at a record high on Monday.

Dubai Multi Commodities Centre (DMCC) intends to create the first precious metals refinery and storage facility in the Gulf region facilitated by blockchain technology.

The facility will improve and store precious metals including gold, silver, platinum, palladium, and rhodium, which will be tokenized on goldexchange.com, a secured trading platform, it announced in a statement.

As a piece of the settlement, REIT Development purchased industrial land situated in DMCC’s Jumeirah Lakes Towers’ business district, it stated.

The 100,000 square foot precious metals refinery and storage facility will create a decentralized administration of transactions, making it possible to follow all precious metals that are refined and finally sold internationally to more than 150 countries.