Gold prices slid to the lowest in nearly two weeks as US bond yields surged, curbing the appeal of the non-interest bearing metal.
The global bond rout continued, with US 10-year Treasury yields jumping amid a debate on whether inflation is peaking. That helped inflation-adjusted rates turn positive for the first time in two years this week, a sign investors believe the US Federal Reserve could raise interest rates to cool inflation without severely hurting the economy.
Positive real rates reduce bullion’s appeal since it generates no interest.
Photo: AFP
“Yields are creeping higher again amid a raft of hawkish commentary from a variety of central banks that appears to be paving the way for increasingly aggressive action in the month ahead,” Oanda Corp senior market analyst Craig Erlam said. “This appears to be weighing on gold.”
Still, the precious metal is being supported by haven demand amid Russia’s war in Ukraine and rising inflation.
A Fed anecdotal survey showed that inflationary pressures have remained strong, clouding the outlook for future growth.
Gold prices are proving resilient — gaining more than 6 percent this year — as political and economic risks push investors toward the haven asset.
That is supporting purchases through gold-backed exchange-traded funds, which have seen holdings rise since last year, initial data compiled by Bloomberg showed.
Gold for June delivery fell US$13.90 to US$1,934.30 an ounce, declining 2.06 percent weekly.
Other commodities:
‧Silver for May delivery fell US$0.36 to US$24.46 an ounce, losing 4.82 percent on the week.
‧May copper fell US$0.12 to US$4.58 a pound, down 2.97 from a week earlier.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS