Spot gold at $2,334 was up nearly 1.29% on Friday at the time of the MCX closing. Gold rallied as the US bonds extended their ongoing rally despite hawkish Federal Reserve on soft inflation data and ongoing political turmoil in Europe. Investors are concerned that a political crisis is brewing in France in the wake of French President Macron’s call for a snap parliamentary vote after his party got trounced by the far-right Marine Le Pen’s National rally in the recently concluded European elections. The spread between French and German 10-year yields was set for its biggest weekly jump on fears of a possible debt crisis. Bond yield spreads of other nations like Italy were also widening, though the European Central Bank officials do not see any plausible reasons for alarm.
The US Dollar Index and yields
The ten-year US yields at 4.22% were down 0.48% at the time of the MCX closing and were down around 4.50% on a weekly basis. The US…
