Commodities

Gold resumes losses on Indian demand concerns

2022-07-04 14:13:47 GMT (Economies.com)

Gold prices declined in European trade, resuming its march back towards six-month lows on Indian demand concerns as the Indian government hikes taxes on imported gold. 

 

Losses are contained by a tumble in US 10-year treasury yields, underpinning gold. 

 

Prices Today

 

Gold prices declined 0.4% to $1,803 an ounce, after rising 0.2% on Friday, the first profit in five sessions after marking six-month lows earlier at $1,785. 

 

Gold prices declined 0.9% last week, the third weekly loss in a row as haven demand weakens. 

 

Indian Demand

 

The Indian Government decided to hike import taxes on gold to 12.5% from 7.5% to control demand. 

 

Gold traders discounted prices considerably recently to boost weak demand, with the new decision expected to tank demand even more. 

 

US Yields

 

US 10-year treasury yields fell 4.25% on Friday for the fourth straight session to four-week lows at 2.791%, underpinning gold prices. 

 

Recent US data showed US manufacturing PMI tumbled to 53 from 56.1, spreading concerns about US economic performance. 

 

The SPDR 

 

Gold holdings at the SPDR Gold Trust fell 8.41 tones on Friday, the ninth decrease in a row to a total of 1,041 tones, the lowest since February 28. 

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