PRECIOUS-Gold edges higher as U.S. Treasury yields slip; investors await fresh impetus

BY Reuters | TREASURY | 06/28/22 01:58 AM EDT
       * SPDR Gold ETF holdings down on Monday
    * U.S. 10-year Treasury yields ease; USD steady
    * Asian shares edge down in early trade

 (Updates details and prices)
    By Bharat Gautam
    June 28 (Reuters) - Gold prices edged up on Tuesday as U.S.
Treasury yields weakened, but the absence of any market-moving
catalysts kept investors on the sidelines.
    Spot gold        was up 0.2% to $1,825.99 per ounce by 0536
GMT. U.S. gold futures        firmed 0.1% to $1,827.30.
    Benchmark U.S. 10-year Treasury yields eased slightly after
rising on Monday, buoying demand for non-yielding gold.
    A move by Britain, the United States, Japan and Canada to
ban new imports of Russian gold is being seen as largely
symbolic within the global bullion market, as Russian exports to
the West have already dried up.
   Gold rose in Asian trading on Monday following the
development over the weekend, before quickly losing momentum to
end the session lower.
    "The 'Russian gold ban' was the catalyst that never was.
Russian assets have been a no-go since Russia's invasion, so the
G7's confirmation of a gold ban was a non-event. And that leaves
gold where it began the week - in the middle of a choppy range,"
City Index senior market analyst Matt Simpson said.
    The dollar        was steady. Gold has been tracking the
currency closely, and its strength has put a lid on prices of
greenback-priced bullion in recent weeks.
    "Gold remains a traders' market - which is vulnerable to
false breaks and quick turnarounds on little news. This means
range-trading strategies are preferred until we see a catalyst,
which instils some life back into markets," Simpson said.
    Asian shares edged down in early trade with investors taking
their cues from a volatile Wall Street session overnight, while
oil prices climbed following last week's rout.
    SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.44% to 1,056.40
tonnes on Monday from 1,061.04 tonnes o Friday.
    Spot silver        firmed 0.2% to $21.18 per ounce, and
platinum        eased 0.3% to $904.99, while palladium
rose 1% to $1,889.67.


 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Sherry Jacob-Phillips and Rashmi Aich)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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