3/25, 3:38 PM (Source: TeleTrader)
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Gold climbs to month-to-date high as rates decline

Precious metals advanced on Monday as investors were looking for a cushion amid rising speculation on a downturn in the United States economy. Unfavorable manufacturing data in Europe, China and Japan have already prompted central banks to scale down trajectories they see for interest rates, inflation and economic growth. The Federal Reserve has turned dovish and even surprised the markets with the extent of the shift and investors turned to sovereign bonds, which pushed yields and real interest rates down.

The spread on yields between US three-month bills and the benchmark 10-year notes has closed and turned negative on March 22. The phenomenon has preceded six recessions in the world's largest economy in the last fifty years. The dollar was looking for direction, but oil dipped with bets on weakening global growth.

Gold was 0.66% in the green at 3:35 pm CET, selling for $1,321.7 per ounce. Earlier it hit $1.322.1, the highest mark since February 28. Spot silver gained 0.75% to $15.55. Platinum was 0.85% higher at $854.87 for one troy ounce and palladium, its sister metal, surged 1% to $1,570.66.

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