Gold Jumps Most in a Week on Renewed Demand for Inflation Hedge

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Gold futures rose the most in a week after the dollar’s drop and crude oil’s rally boosted the appeal of the metal as a store of value.

The greenback is extending losses after an April decline snapped a nine-month rally against a basket of 10 currencies, while oil has jumped more than 40 percent from its 2015 low. Gold has historically been held as an alternative to the dollar and as a hedge against rising consumer costs.

Gold futures for June delivery rose 0.8 percent to settle at $1,192.40 an ounce at 1:50 p.m. on the Comex in New York, the biggest gain since May 4.

Silver futures for July delivery advanced 1.3 percent to $16.526 an ounce. Earlier, the price touched $16.12, the lowest for a most-active contract since May 1.

Platinum futures for July delivery added 0.5 percent to $1,133 an ounce on the New York Mercantile Exchange. Palladium futures for June delivery climbed 0.6 percent to $785.15 an ounce.

Source: Bloomberg

Gold Rises as Dollar Drop, Oil Rally Boosts Demand for Hedge

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Gold futures rose after the dollar’s drop and crude oil’s rally boosted the appeal of the metal as a store of value.

The greenback fell as much as 0.6 percent against a basket of 10 currencies. Oil in New York topped $60 a barrel, and gasoline futures rose. Gold jumped as much as 1.1 percent before paring gains.

The metal has climbed 4.3 percent from this year’s low of $1,141.60 an ounce on March 17. The dollar fell 2.9 percent in April, snapping a record nine-month rally. The greenback dropped on Tuesday as bond yields outside the U.S. advanced relative to Treasuries. Oil has jumped more than 40 percent from the 2015 low.

Gold futures for June delivery rose 0.6 percent to $1,190.60 at 10:09 a.m. on the Comex in New York. Volume in all contracts was 12 percent above the 100-day average for this time, according to data compiled by Bloomberg.

On Monday, holdings in exchange-traded products backed by gold fell for the fourth straight session to the lowest since Jan. 15, according to Bloomberg data.

Silver futures for July delivery rose 0.4 percent to $16.385 an ounce. Earlier, the price touched $16.12, the lowest for a most-active contract since May 1.

Source : Bloomberg

U.S. Stocks Drop for Second Day as Bond Rout Spreads to Equities

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U.S. stocks fell for a second day, joining a retreat in global shares after a rout in fixed-income markets spread to equities.

The Standard & Poor’s 500 Index fell 0.3 percent to 2,099.08 at 4 p.m. in New York. The gauge all but erased a 0.9 percent slide as the 10-year Treasury note yield retreated from the highest level since November. The benchmark index ended Friday two points shy of a record before declining to start this week.

The S&P 500 arrested its slide as Treasuries reversed, and energy shares advanced with the price of crude after the group Monday fell the most since January.

Source: Bloomberg

U.S. Stocks Decline for Second Day Amid Selloff in Global Bonds

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U.S. stocks declined, amid a second day of losses for the Standard & Poor’s 500 Index, as equities followed a global bond selloff.

Intel Corp. lost 1.5 percent as semiconductors led technology shares lower. Morgan Stanley and American Express Co. declined more than 1 percent as financial companies fell. Chesapeake Energy Corp. and Transocean Ltd. paced an advance in energy amid oil’s rebound. Verizon Communications Inc. slipped 0.8 percent after agreeing to buy AOL Inc. in a deal valued at $4.4 billion. AOL jumped 18 percent.

The S&P 500 fell 0.4 percent to 2,096.50 at 12:15 p.m. in New York. The gauge pared an earlier 0.9 percent drop as Treasuries erased losses. The Dow Jones Industrial Average decreased 64.63 points, or 0.4 percent, to 18,040.54. The Nasdaq Composite Index dropped 0.5 percent after earlier losing more than 1 percent. The yield on 10-year notes earlier reached a five-month high before falling.

Source: Bloomberg

European Stocks Slide With German Equities as Bonds Deepen Rout

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A slump in German shares pushed European stocks lower for the first time in four days amid a selloff in euro-area government bonds.

The Stoxx Europe 600 Index dropped 1.3 percent to 396.09 at the close of trading, having earlier lost as much as 2.1 percent. All 19 industry groups declined. Yields surged on 10-year notes in Germany, Italy and Spain, while the euro strengthened.

The Stoxx 600 has retreated 4.3 percent after a 21 percent surge this year through a record in April amid quantitative-easing measures by the European Central Bank.

High expectations for the ECB’s bond-buying program pushed global bond valuations to extreme levels, triggering a “large and vicious” selloff in European debt, Goldman Sachs Group Inc. wrote in a note.

All but two of 18 western-European markets fell. Germany’s DAX Index led declines, tumbling 1.7 percent. The U.K.’s FTSE 100 Index, France’s CAC 40 Index and Spain’s IBEX 35 Index slipped more than 1 percent.

Source: Bloomberg