Gold Rises as Weak US Data Weighs on Dollar, Treasury Yields
Gold rose for a second straight session early Monday, edging higher as the dollar and Treasury yields eased after another report pointed to a slowing US economy.Gold for November delivery was last up $15.70, or 0.4%, at $4,145.40 per ounce.The US Census Bureau reported that durable goods orders rose 0.3% in June, following a 4.0% decline in May, but well below consensus expectations for a 2.1% increase, according to MarketWatch.The weaker-than-expected data added to signs of a slowing US economy and could bolster the case for the Federal Reserve to keep interest rates steady despite higher energy prices following the US-Iran war, which have increased inflationary pressures. Although gold prices are down 21% since the Feb. 28 start of the war, demand for the precious metal remains solid."Gold climbed about 0.9% to near 4,090 dollars an ounce, on track for its first monthly gain since the Middle East conflict began, with central-bank reserve buying and sovereign-debt concerns cited as structural supports," Saxo Bank wrote.The dollar was lower early, with the ICE dollar index last seen down 0.08 points to 101.38. Treasury yields also dropped. with the two-year note paying 4.327%, down 2.5 basis points, while the yield on the 10-year note was down 3.7 points to 4.651%.
