Gold prices continued to maintain their gains last week with support from weak US dollar trading despite rising US treasury yields limiting gains.
In the Asian session, spot gold traded at a more than a week -long high of $ 1,850 per ounce. Gold futures traded positive at $ 1,948 an ounce.
The US dollar continued to trade gloomily at the start of the week following its first loss in nearly two months, as investors reduced holdings against it previously supported by expectations of an interest rate hike by the Federal Reserve (Fed).
However, the rise in gold prices was limited by rising US 10 -year bond yields driven by investors' hopes that the easing of sanctions in Shanghai would return to support global growth.
Shanghai is expected to end all sanctions starting June 1 and an unexpected interest rate cut last week, has been taken as a signal that authorities will provide support for the recovery.
Meanwhile, several Fed policymakers, including Chairman Jerome Powell, refrained from giving hints for a 75 basis -point rate hike but continued to reiterate about a half -percent increase in interest rates at the next meeting.
The minutes of the FOMC meeting, which will be released this week, will be scrutinized by investors and determine the next movement of the US dollar.
