NEW YORK (Scrap Register): Gold continues to be underpinned by exchange-traded-fund inflows but held back by a muscular U.S. dollar, said Commerzbank.
Comex December gold futures are roughly steady around mid-morning in New York.
“Admittedly, gold is finding support from moderate but continual ETF inflows; since the beginning of the month, holdings have been increased by 19 tons, which is more than in the whole of last month,” analysts at Commerzbank added.
However, gold is facing headwind on the one hand from the firm U.S. dollar, which appreciated for a time to a 2 ½-month high against the euro this morning.
On the other hand, rising stock markets and higher bond yields are keeping the gold price in check. The yields on 10-year U.S. Treasuries have climbed to a 4 ½-month high, which makes gold less attractive as an alternative