Gold price slips 1% on recovery in market

london — Gold shed one per cent on Monday as a recovery in share markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to book profits.

Spot gold was down 0.9 per cent at $1,499.50 per ounce as of 1117GMT, while US gold futures slipped 0.9 per cent to $1,510.30.

“The rally in bond markets seems to have paused at least for now and we’ve seen some additional gains in stocks over the weekend, so a bit of a more optimistic start to the week is helping to attract profit-taking in gold,” Saxo Bank commodity strategist Ole Hansen said.

“However, gold is holding above the $1,500 level and key support level around $1,480 - $1,485 area. But with bond yields moving up a notch, there isn’t much room for gold buyers,” Hansen added.

Benchmark US Treasury yields gained on Monday, moving further away from record lows after the closely-watched US yield curve between two- and 10-year bonds inverted for the first time since 2007 on Wednesday.

Equity markets around the world rose, with European markets rising for a second session, as investors cheered signs of moves by Germany and China to counter slowing growth.

Over the weekend, US President Donald Trump and top White House officials dismissed concerns that economic growth may be faltering, saying they saw little risk of recession. Trump also said he was “not ready to make a (trade) deal yet” with China.

Markets are awaiting the U.S. Federal Reserve’s Jackson Hole symposium this week for greater clarity on the future path of interest rates. —