Home Economy Gold retreats from near 5-month peak on firmer yields, equities

Gold retreats from near 5-month peak on firmer yields, equities

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A worker tends to gold bars at a precious metals plant.

Andrew Rudakov | Bloomberg | Getty Images

Gold prices on Wednesday retreated from a near five-month high marked in the previous session, as an uptick in bond yields weighed on the safe-haven metal while strong U.S. economic data prompted the shift back into riskier assets.

Fundamentals

Spot gold was down 0.1% at $1,898.58 per ounce, as of 0053 GMT, after hitting its highest since Jan.8 at $1,916.40 on Tuesday.

U.S. gold futures eased 0.2% to $1,901.90 per ounce.

Data showed that U.S. manufacturing activity picked up in May as pent-up demand in a reopening economy boosted orders. But unfinished work piled up because of shortages of raw materials and labor.

The U.S. 10-year Treasury yield rose to a more than one-week high overnight, increasing the opportunity cost of holding non-interest bearing gold.

Risk sentiment in wider finical markets remained upbeat as investors weighed the latest U.S. economic data…

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