FOX LIVE GOLD NEWS UPDATE
PRECIOUS-Gold prices recover on short-covering
May 16 (Reuters) – Gold prices recovered some lost ground on Wednesday on short-covering after prices fell to the lowest level this year in the previous session on surging U.S. bond yields and a stronger dollar.
Spot gold XAU= rose 0.3 percent to $1,294.30 per ounce at 0639 GMT, after shedding 1.7 percent and marking the lowest this year at $1,288.31 in the previous session.
This was also the lowest price level for the yellow metal since Dec. 28.
U.S. gold futures GCcv1 for June delivery were up 0.3 percent at $1,293.60 per ounce.
“Rising U.S. bond yields and a stronger dollar were factors behind gold’s decline below the $1,300 level. The slight pick up suggests that there might have been some opportunistic buying on the part of investors,” said John Sharma, an economist with National Australia Bank.
A stronger dollar makes greenback-denominated gold more expensive for holders of other currencies, while rising U.S. yields tend to weigh on bullion’s non-yielding appeal.