Gold edged up after sinking to its lowest close since March, with investors tempering bets on future Federal Reserve rate hikes.
Yields on US Treasuries fell on Wednesday as traders slightly pulled back expectations for further tightening, after Fed swaps at one point fully priced in a hike by July following the Bank of Canada's unexpected decision to restart its rate-hiking campaign. Markets are still tilting toward higher US rates, which are usually negative for non-interest bearing gold.
Meanwhile, China increased its gold reserves for a seventh straight month, signaling ongoing strong demand for the precious metal from the world's central banks.
Spot gold climbed 0.3% to $1,946.19 an ounce as of 9:04 a.m. in Singapore, after falling 1.2% on Wednesday. The Bloomberg Dollar Spot Index slipped 0.1%. Silver, platinum and palladium edged higher.
Source : Bloomberg
