Por Sethuraman NR
Apr 21 (Reuters) – Gold prices rose on Wednesday, supported by falling U.S. Treasury yields and falling global stock markets, while a surge in coronavirus cases reignited fears about the worldwide economy.
* At 1354 GMT, spot gold was up 1% at $ 1,794.56 an ounce. Gold futures in the United States were up 0.5% at $ 1,788 per ounce.
* Prices are rising in the face of declining bond yields, lowering the opportunity cost of holding gold, said Quantitative Commodity Research analyst Peter Fertig. He added that there were also some safe haven purchases inspired by weaker equity markets.
* The return on the 10-year US government bond was trading below 1.6%, raising the appeal of the bullion, which does not pay interest.
* Global stocks were contained after Netflix’s after-hours decline, while rising COVID-19 infections in Asia pushed crude down.
* However, limiting the advance of gold, the US dollar strengthened against its rivals, rising from a seven-week low to which it fell on Tuesday.
* Market participants await the European Central Bank meeting on Thursday to gain clarity on stimulus plans for the bloc. A policy meeting of the Federal Reserve is scheduled for next week.
* Silver was up 0.9% at $ 26.09 an ounce. Palladium was up 1.1% at $ 2,791.19 an ounce, while platinum was up 0.4% at $ 1,191.55 an ounce.
(Reporting by Nallur Sethuraman and Sumita Layek in Bengaluru; Edited in Spanish by Janisse Huambachano)