PRECIOUS-Gold teeters above $1,800 as dollar strength weighs

BY Reuters | TREASURY | 07/03/22 11:45 PM EDT
       * Close below $1,800 could trigger more selling in gold
-analyst
    * Independence Day holiday for U.S. stock and bond markets
    * Gold prices hit a five-month low on Friday

 (Updates prices)
    By Bharat Gautam
    July 4 (Reuters) - Gold edged lower in choppy trade on
Monday, pressured by a stronger U.S. dollar, but weakness in
Treasury yields helped keep prices above $1,800.
    Spot gold        was down 0.2% at $1,807.48 per ounce, as of
0803 GMT. U.S. gold futures        rose 0.4% to $1,808.80.
    Bullion prices hit a five-month low of $1,783.50 on Friday,
but recovered to end the session nearly steady.
    "Once again, we saw buyers support gold with its break below
$1,800 on Friday, and with U.S. yields continuing to retrace, it
allows the potential for gold to rise over the near term," City
Index senior market analyst Matt Simpson said.
    Benchmark U.S. 10-year Treasury yields fell to their lowest
level in a month on Friday, lifting non-yielding bullion.
    "But the reality is that managed funds and large speculators
are increasing their short bets against gold, and if we see a
close below $1,800 then it could trigger another bout of
selling," Simpson said.
    The dollar        hovered close to recent two-decade highs,
continuing to make dollar-priced gold less attractive for buyers
holding other currencies, after playing a significant part in
bullion's worst quarterly showing in more than a year.
    Asian equities started cautiously on Monday as a run of soft
U.S. data suggested downside risks for this week's June payrolls
report, while concerns about recession were still driving a
relief rally in government bonds.
    Spot gold may test resistance at $1,820 per ounce, and a
break could lead to a gain to $1,829, according to Wang Tao,
technical analyst at Reuters.
    U.S. Federal government offices, stock and bond markets, and
the Federal Reserve will be closed on Monday for the
Independence Day holiday.
    Spot silver        eased 0.2% to $19.84 per ounce, platinum
       fell 0.8% to $882.26, and palladium        dropped 0.7%
to $1,947.35.


 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Uttaresh.V and Jason Neely)

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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