Gold Prices Up In Asia Ahead Of U.S. Holiday
Gold prices rose in Asia on Tuesday ahead of a public holiday in the U.S. with thin trading expected.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose 0.41% to $1224.18 a troy ounce.
Overnight, gold prices slumped lower on Monday, pressured by a sharp uptick in U.S. bond yields in the wake of upbeat manufacturing activity suggesting that U.S. economic growth remained robust.
Gold is set to make a negative start to the month, after better-than-expected manufacturing data fuelled U.S. rate hike expectations, underpinning a move higher in U.S. bond yields, lessening demand for non-interest bearing gold.
The Institute for Supply Management said its manufacturing index rose to 57.8 last month from 54.9 in May. The measure now stands at its highest level since August 2014.
The upbeat manufacturing data lifted U.S. 10-Year to a two-month high of 2.353, spurring a rally in the greenback against its rivals, adding further pressure on the precious metal.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar - A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
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