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Treasury yields up, U.S. stocks down
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Gold prices could slip to $1,933/oz -analyst
(Updates prices)
By Deep Kaushik Vakil
March 28 (Reuters) - Gold prices rose on Tuesday,
drawing support from a weaker U.S. dollar even as higher bond
yields and easing worries about a full-blown banking crisis
limited gains for the safe-haven asset.
Following two sessions of declines, spot gold gained
0.7% to $1,970.88 per ounce by 1:40 p.m. EDT (1740 GMT). U.S.
gold futures settled 1% higher at $1,973.50.
The U.S. dollar index retreated about 0.4%, making
the greenback-denominated precious metal less expensive for
holders of other currencies. "The weaker U.S. dollar index today is adding to some buying
interest in the gold market. However, solid buying interest is
being squelched by the fact that the banking crisis, at least
for the moment, seems to have stabilized," said Jim Wyckoff,
senior analyst at Kitco Metals.
In the first congressional hearing into the sudden collapse
of two U.S. regional lenders and the ensuing chaos in markets, a
top U.S. regulator criticized Silicon Valley Bank over its risk
management, as lawmakers demanded to know why warning signs of
trouble were missed.
"The marketplace is still tentative in that regard, and
that's going to keep risk appetite contained for at least the
next couple weeks until we think we've moved past this crisis,"
added Wyckoff.
Wall Street struggled for direction as investors weighed
receding concerns about a banking crisis, while Treasury yields
rose amid focus on Federal Reserve's interest rate trajectory. In the near term, gold prices could slip to $1,933, but the
outlook for gold remains bullish with fast approaching peak in
U.S. rates and a danger of hitting a recession in coming months,
said Ole Hansen, head of commodity strategy at Saxo Bank.
Spot silver rose 0.6% to $23.23 per ounce, platinum shed 0.7% to $965.19, while palladium was up 1%
at$1,422.61.
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(Reporting by Deep Vakil in Bengaluru
Editing by Marguerita Choy and Shilpi Majumdar)
