Gold prices climbed higher on Tuesday as the dollar slid against its peers and the yield on Treasury bonds dropped.

Data showing a drop in U.S. consumer confidence reading contributed as well to the increased demand for the safe-haven yellow metal.

The dollar index dropped to 89.54 in the Asian session. After recovering to 89.85 by noon, the index retreated again and was last seen at 89.65, down 0.21% from Monday’s close.

Gold futures for June ended up by $13.50 or about 0.7% at $1,898.00 an ounce.

Silver futures for July closed higher by $0.151 at $28.056 an ounce, while Copper futures for July settled at $4.5065 per pound, down $0.1090 from the previous close.

The dollar slid as comments from a series of Fed officials helped ease fears about inflation.

James Bullard, president of the St. Louis Federal Reserve, told Yahoo Finance in an exclusive interview that policymakers should not be too eager to pull back support yet as vaccinations bring the economy “closer and closer” to pre-pandemic form.

Other Fed officials Raphael Bostic and Lael Brainard also talked down inflation risks and described the recent demand-supply disruptions as transitory.

A report released by the Conference Board said the consumer confidence index edged down to 117.2 in May after climbing to a revised 117.5 in April. Economists had expected the consumer confidence index to pull back to 119.5 from the 121.7 originally reported for the previous month.

The material has been provided by InstaForex Company – www.instaforex.com

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