A worker deals with gold bars in a precious metals factory.
André Rudakov | Bloomberg | Getty Images
Gold prices edged up on Monday as lower U.S. Treasury yields and concerns about a slowing global economic recovery due to the spread of the delta variant of the coronavirus boosted demand for the safe haven metal.
Spotted gold was up 0.2% to $ 1,814.38 an ounce at 12:57 am GMT.
US gold futures edged up 0.1% to $ 1,816.40.
Benchmark 10-year Treasury yields fell to an almost two-week low of 1.2640%, lowering the opportunity cost of holding non-interest-bearing gold.
Asian stocks slipped again as investors’ appetite for risk was soured by fears of rising inflation and a relentless rise in coronavirus cases.
Gold is used as a safe investment in times of political and financial uncertainty. It is also considered a hedge against inflation.
Many countries, especially in Asia, are struggling to curb the highly contagious delta variant of the coronavirus and have been forced to take lockdown measures.
More than 190.45 million people are believed to have been infected with the novel coronavirus worldwide and 4,254,285 have died, according to a Reuters tally.
On the physical side, gold in India was sold at a discount last week for the first time in nearly a month as rising local prices dampened buying. Buyers from other major Asian hubs were also put off by the price hike.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.6% to 1,028.55 tonnes on Friday, the lowest since May 14.
Speculators increased their net long positions in COMEX gold during the week ended July 13, according to data from the US Commodity Futures Trading Commission.
Silver rose 0.2% to $ 25.72 an ounce, palladium climbed 0.6% to $ 2,645.98 and platinum was flat at $ 1,103.15.