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Gold Drops as Investors’ Risk Appetite Grows

Gold traded down as of this morning. The dollar’s position became stronger and worries about the current growth in COVID-19 cases prompted by the Delta variant also eased, this way warming investors’ risk appetite.

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Gold futures moved down 0.18% to $1,808.05. The dollar, which usually trends in the opposite way to gold, moved up to a near three-and-a-half-month high. Benchmark 10-year U.S. Treasury yields also bounced off five-month bottom.

Asian shares also traded up, as investors’ risk appetite grew thanks to upbeat earnings reports and renewed economic optimism.

In Asia, the Bank of Japan (BOJ) also reported the minutes from its latest policy meeting. Many BOJ policymakers were anxious that rising global commodity costs will eventually make the country’s inflation grow, however, some also claimed that weak consumption will make any upward pressure modest.

Japanese trade data released earlier in the day was also stronger than predicted, with exports moving up 48.6% year-on-year, a fourth month in a sequence of double-digit gains and imports growing 32.7% year-on-year in June.

Elsewhere in the world, Swiss customs data posted on Tuesday said exports of gold to India rose higher in June, although remaining far below levels seen earlier this year, while shipments to China fell.

The Bank of Russia also said the country’s gold reserves traded at 73.7 million troy ounces at the start of July. As for now, the European Central Bank and Bank Indonesia will hand down their respective policy decisions soon.

Meanwhile, surface operations, including processing, resumed at Miner Barrick Gold’s Hemlo mine after being suspended during the previous week due to a worker fatality, the company said on Tuesday.

As of other precious metals, silver was stable at $24.92 per ounce, palladium moved up 0.2% and platinum grew 0.3%.

 

 

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