Gold prices rose today, Monday, supported by a decline in U.S. Treasury yields and concerns over increasing COVID-19 infection cases in some countries. As of 04:18 GMT, spot gold was up 0.3% at $1,773.90 per ounce. Trading volumes in Asia were low due to holidays in both China and Japan. U.S. gold futures increased 0.4% to $1,773.90 per ounce.
Margaret Yang, an analyst at Daily FX, stated, "The pandemic situation in Japan and India remains a major concern among market participants, thus leading to increased demand for safe-haven assets like gold," adding that the drop in U.S. Treasury yields provided further support. The benchmark 10-year U.S. Treasury yields fell after reaching their highest levels in nearly two weeks last week. Lower bond yields reduce the opportunity cost of holding gold, which does not yield returns.
India reported over 300,000 new coronavirus cases today for the twelfth consecutive day, raising the total number of cases to nearly 20 million. Meanwhile, the dollar index hovered near its highest level in about two weeks, which it reached earlier today against its competitors.
Investors are now focused on a range of upcoming U.S. economic data due this week, including a survey from the Institute for Supply Management on the manufacturing sector and April job figures, to gather further indicators regarding the recovery in the world's largest economy.
Among other precious metals, palladium rose 0.6% to $2,953.19 per ounce after hitting a record high of $3,007.73 per ounce on Friday due to supply concerns. Silver increased by 0.3% to $25.97 per ounce, while platinum was up 0.5% at $1,204.63.
