Gold edges higher as virus spread cuts yields, pressures stocks

Gold edged higher as Treasury yields fell for a second day on fears of a slowing economic recovery and the prospect of reduced central-bank stimulus.

European and U.S. equities fell Thursday as investors sought havens, boosting U.S. bonds and bullion. The relentless spread of the delta virus variant is taking its toll on America’s economy as well as global supply chains, depressing growth while boosting inflation.

Federal Reserve Bank of Dallas President Robert Kaplan said he would support a plan to adjust the bank’s bond buying program soon after the September meeting. Remarks from European Central Bank President Christine Lagarde after a policy meeting later Thursday will also be examined for her take on when stimulus should be pared.  

A reduction in economic support from major central banks would weigh on bullion, which surged to a record last year on pandemic-era stimulus. Kaplan’s comments follow a separate Fed survey that added to signs that U.S. economic growth is moderating due to the spread of the delta strain.

Gold added 0.3% to $1,793.76 an ounce as of 9:22 a.m. in London. The Bloomberg Dollar Spot Index edged lower. Silver, palladium and platinum gained.