Gold Futures Market News and Commentary
June gold (GCM21) on Monday closed down -12.10 (-0.69%), and May silver (SIK21) closed down -0.458 (-1.81%).
Gold and silver prices on Monday retreated on long liquidation pressure sparked by higher T-note yields. Losses were limited by a weak dollar and weakness in stocks, which boosted the safe-haven demand for precious metals.
Higher global bond yields are negative for gold demand, as the 10-year T-note yield on Monday rose +2.3 bp to 1.682%, and the 10-year German bund yield rose +1.0 bp to -0.293%.
Central bank comments on Monday were supportive for gold but bearish for industrial metals demand and silver prices. ECB Executive Board Member Panetta said the Eurozone would not return to its pre-pandemic growth path before mid-2022. Also, Boston Fed President Rosengren said a full recovery might take longer than some expect and that a highly accommodative Fed policy is appropriate.
Global economic data on Monday was negative... Read more