FOREX-Gold hits 2-week low, range-bound on safe-haven demand

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FOREX-Gold hits 2-week low, range-bound on safe-haven demand

On Wednesday, Reuters-Gold hit its lowest in two weeks, although prices were range-bound as safe-haven demand for bullion helped offset some sustained pressure from a firmer and elevated U.S. Treasury yields.

A stronger bullion makes it more expensive for buyers holding other currencies, while gains in benchmark U.S. 10 year Treasury yields reduce the appeal of zero-yield gold.

Spot gold was down 0.1% at $1,834. 89 per ounce, as of 0719 GMT, hit its lowest since May 19 at $1,829. There was a discussion on the topic 24 earlier in the session. The US gold futures fell by 0.6% to $1,838. The outlook for interest rates and the dollar, and geopolitical concerns, are important factors for gold, and competing interests in gold are holding gold in a vice, said Michael McCarthy, chief strategy officer at Tiger Brokers, Australia.

The president of the Federal Reserve Chair met with the Federal Reserve Chair on Tuesday to discuss historic inflation that's draining American wallets, even as he assured the central bank chief he would have freedom from political interference.

The Fed hiked short-term U.S. interest rates in order to fight rising costs increases the chance of holding gold, which is considered a hedge against inflation and a safe-haven asset during times of political uncertainty.

Russian troops fought to take control of the eastern industrial city of Sievierodonetsk, as the United States said it will provide Ukraine with advanced rockets to force Moscow to negotiate an end to the war.

Spot gold may break its support at $1,837, according to a technical analyst Wang Tao, who said it may extend its losses into a range of $1,817 to $1,826 per ounce.

Spot silver rose by 0.3% to $21.60 per ounce after hitting its lowest since May 19 earlier in the day of $21.40.

Platinum rose 1.1% to $975.70, and the palladium was up 0.9% to $2,016, a gain of 1.1%.