Gold prices steadied close to a two-month high

Gold prices steadied close to a two-month high on April 22, a whisker away from the key $1,800 threshold as the U.S. dollar faltered with easing Treasury yields. Meanwhile, supply concerns kept palladium anchored close to last session’s record high.

Spot gold was little changed at $1,792.66 per ounce by 0707 GMT, after reaching its highest since February 25 at$1,797.67. Meanwhile, U.S. gold futures were flat at $1,793 per ounce.

IG Market analyst Kyle Rodda announced that the dynamic in U.S. Treasuries is underpinning the upswing as it’s pushing lower in the very short term. Kyle Rodda added that a decline below 1.5% in yields could help push gold over $1,800, a key psychological level.

The benchmark 10-year U.S. Treasury yield was held below 1.6%, decreasing the opportunity cost of holding non-yielding bullion. The U.S. dollar index held near multi-week lows versus most major currencies.

According to Harshal Barot, a senior research consultant for South Asia at Metals Focus, old prices could easily move above $1,800 in the next couple of days as there is still a lot of uncertainty in the international markets.

market participants now await a ECB meeting

Harshal Barot added that coronavirus infections continue to be at record highs in many countries. There is this whole revaluation about global growth prospects that should help safe-haven assets, including gold. Moreover, it’s essential to mention that market participants now await a European Central Bank meeting due later in the day.

Palladium declined by 0.4% and traded at $2,864.65 an ounce, having boosted to a lifetime high of $2,891.20 per ounce on April 21.

HSBC analysts announced that long-running tightness in the market fuels the metal’s rise as auto demand remains strong, adding that they anticipate prices to be volatile.

The auto-catalyst metal has increased almost 25% since Russia’s Nornickel, the world’s biggest producer of the metal, partly suspended operations at two of its mines in late February.

Silver dropped by 0.3% and settled at $26.49 per ounce, while platinum was down 0.2% and traded at $1,211.26.