FINWIRES · TerminalLIVE
FINWIRES

Update: Gold Steady Despite a Rising Dollar and Higher Treasury Yields

By

(Updates the price in the second paragraph.)

Gold was steady midafternoon on Tuesday, sticking above $4,000 even as the dollar and yields rose.

Gold for August delivery was last seen up 0.1% to $4,042.60 per ounce.

The price of the metal has dropped 10% over the past month as investors worry rising US inflation due to higher energy prices will force a hike to US interest rates, bearish for the metal since it offers no yield.

"The macro backdrop remains dominated by ongoing U.S. dollar strength - with USD/JPY reaching its highest level since 1986 in Asia today - and lingering concerns that the Federal Reserve may keep a hawkish stance despite the sharp decline in energy prices," Saxo Bank wrote.

The dollar rose early, with the ICE dollar index last seen up 0.11 points to 101.21. Treasury yields also rose, with the US two-year note last seen paying 4.135%, up 2.0 basis points, while the yield on the 10-year note was also up 3.6 points to 4.415%

Related Articles

Sectors

Sector Update: Healthcare Stocks Higher Late Afternoon

Healthcare stocks were higher late Monday afternoon, with the NYSE Healthcare Index up 0.1% and the State Street Health Care Select Sector SPDR ETF (XLV) gaining 0.2%.The iShares Biotechnology ETF (IBB) rose 0.9%.In corporate news, Zymeworks (ZYME) has agreed to buy Theravance Biopharma (TBPH) for $17 per share in a roughly $929 million deal, the companies said in separate statements. Zymeworks shares were down 0.6%, and Theravance fell 3.2%.Abbott Laboratories (ABT) shares were down 1.3%. The Wall Street Journal reported Sunday the company will not face criminal charges after the US Department of Justice closed a years-long investigation into its baby formula operations.QuidelOrtho (QDEL) shares surged 34%. The company is weighing the sale of its point-of-care testing business behind rapid COVID-19 antigen tests for about $1.5 billion, the Financial Times reported Saturday.Alkermes (ALKS) stock has been re-rated following a recent orexin-peer takeout, but upcoming orexin updates risk eroding newly ascribed orexin-related value, BofA Securities said in a note Monday. BofA downgraded Alkermes to underperform from neutral with a price target of $38. Shares were down 4.7%.

$ABT$ALKS$QDEL$TBPH$ZYME
Sectors

Sector Update: Energy Stocks Decline Late Afternoon

Energy stocks were lower late Monday afternoon, with the NYSE Energy Sector Index decreasing 0.2% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.4%.The Philadelphia Oil Service Sector Index was falling 1.3%, and the Dow Jones US Utilities Index decreased 0.8%.Front-month West Texas Intermediate crude oil rose 1.7% to $70.42 a barrel, and the global benchmark Brent crude contract added 1.1% to $72.79 a barrel. Henry Hub natural gas futures fell 3.1% to $3.18 per 1 million BTU.In corporate news, SandRidge Energy (SD) shares rose 1.9% after it said Monday it agreed to acquire some producing assets and leasehold interests in the Cherokee play in the mid-continent region for $65 million in cash.Duke Energy (DUK) entered a settlement agreement with the US Department of the Interior to provide reliable energy at lower costs to customers in the Carolinas, the Department of the Interior said Monday. Duke Energy shares were down 0.1%.Matador Resources' (MTDR) majority-owned San Mateo Midstream joint venture has agreed to acquire the operating subsidiaries of Cardinal Midstream Partners from EnCap Flatrock Midstream for $752 million in cash. Matador shares declined 0.5%.Ring Energy (REI) has joined the Russell 3000 Index, effective when the US market opens on Monday, as part of the Russell indexes reconstitution, the company said on the same day. Ring Energy shares gained 3.3%.

$DUK$MTDR$REI$SD
Sectors

Sector Update: Consumer Stocks Mixed Late Afternoon

Consumer stocks were mixed late Monday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) shedding 0.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 2.5%.In corporate news, Comcast (CMCSA) said Monday it plans to split into two publicly traded companies, separating its NBCUniversal and Sky media businesses from its broadband and connectivity operations as the media giant aims to boost strategic focus for each unit. Comcast shares jumped past 5%.Hormel Foods (HRL) agreed to sell its Brazilian operations, housed under the Ceratti brand, to Zanchetta Alimentos. Hormel shares fell 1.1%.Amazon's (AMZN) Prime Day discounts generated over $26.4 billion in sales from June 23 to June 26, a 9.3% year-over-year increase, Reuters reported over the weekend, citing Adobe (ADBE) Analytics data. Amazon shares gained 3.2%.Honda Motor (HMC) is considering issuing euro-denominated bonds that could raise over 400 billion yen ($2.47 billion) to compensate parts makers after the company reversed its electric vehicle strategy, Nikkei Asia reported Monday. Honda shares rose 1.5%.

$AMZN$CMCSA$HMC$HRL