PRECIOUS-Gold languishes near 7-week low on rising dollar, bond yields

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Sep 29 (Businesshala) – Gold prices were flat near a seven-week low on Wednesday, with gains in the dollar and US Treasury yields weighing on rising expectations of a previously anticipated interest rate liftoff.

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* Spot gold was flat at $1,735.17 an ounce, up by 0123 GMT. On Tuesday, prices fell to their lowest level since August 11 at $1,726.19.

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* US gold futures were little changed at $1,735.90.

* Dollar index hovered near more than 10-month high, touched on Tuesday. The benchmark US 10-year Treasury yield edged closer to a three-month peak, adding to the opportunity cost of holding non-interest-bearing bullion.

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* St. Louis Federal Reserve Chairman James Bullard warned Tuesday that higher inflation may require more aggressive steps by the central bank, including two interest rate hikes in 2022.

* Meanwhile, Fed Chairman Jerome Powell said the US economy was still far from achieving maximum employment, a key component of the central bank’s requirements to raise interest rates.

* US consumer confidence fell to a seven-month low in September as a continued rise in COVID-19 cases deepened concerns about the economy’s near-term prospects.

* China’s net gold imports through Hong Kong in August fell marginally compared to the previous month, data from the Hong Kong Census and Statistics Department showed on Tuesday.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, on Tuesday declined to 990.03 tonnes from 990.32 tonnes a day earlier.

* Silver rose 0.1% to $22.46 an ounce.

* Platinum fell 0.1% to $966.03, while palladium rose 1% to $1,895.47.

Data/Event (GMT) 0900 EU Consumer Confidence. Last September 1545 Federal Reserve President Jerome Powell, ECB President Christine Lagarde, Bank of Japan Governor Haruhiko Kuroda and Bank of England Governor Andrew Bailey speak at the ECB Forum on Central Banking (Reporting by Eileen Soreng in Bangalore; by Ramakrishnan M. editing)

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