The US dollar fell and Treasuries rallied last week, after data released on May 15 showed inflation in April eased more than expected. That offered support for the precious metal, which doesn’t pay interest and is priced in the greenback.
Hedge funds trading Comex futures boosted bullish bets on gold to a three-week high in the week ending May 14, according to the latest data from the Commodity Futures Trading Commission.
Elsewhere, geopolitical risks in Russia and the Middle East re-emerged after a Ukrainian drone strike on a small Russian refinery halted operations on Sunday, while a China-bound oil tanker was hit by a Houthi missile in the Red Sea on Saturday. Precious metals are among assets that tend to benefit from haven demand.
Spot gold was up 0.9% to US$2,437.48 an ounce as of 9.12am in Singapore. The Bloomberg Dollar Spot Index was flat, following a 0.7% decline last week to its weakest in more than a month. Silver, palladium and platinum all climbed.
See also: Gold hovers near record as US growth concerns fan haven demand
Meanwhile, silver was trading near an 11-year high, after a strong rally on Friday was helped by spillover sentiment in wider physical metals markets, where tightening supply has spurred investor demand for materials like copper. Unlike gold, the white metal is also considered an industrial commodity given its usage in things such as solar panels.
