Gold prices ended in the red today, June 7, on the back of an uptick in US Treasury yields as investors weighed data from the world's second-largest economy — China.
Data from the People's Bank of China indicated that its gold reserves increased by about 16 tons in May for the seventh month in a row, bringing the current total to 2,092 tons.
Other data also showed that Chinese exports slumped at a faster-than-expected pace in May. This came on the heels of a pullback in imports, reflecting a possible global economic slowdown, which could, in turn, hinder demand for the yellow metal.
Elsewhere, US Treasury Secretary Janet Yellen said today that the US economy is strong amid robust consumer spending, but some areas are slowing down. However, she anticipates continued progress in bringing inflation down over the next two years.
The yield on the short-term two-year Treasury note climbed by seven basis points (bps) to 4.57%. Further, the yield on the benchmark 10-year Treasury note nudged up 12 bps to 3.79%.
In terms of trading, gold for August delivery dipped 1.20%, or $23.10, to close at $1,958.40 an ounce, after touching $1,986.50 in early trading.
Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, held ground at 104.18 points at 08:39 pm Makkah time.
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