Gold falls on higher risk appetite due to confinement relief

Apr 27 (Reuters) – The price of gold fell on Monday as a rise in US bond yields and plans by several countries to soon ease the confinements caused by the coronavirus boosted risk appetite.

* However, losses were limited by unprecedented stimulus measures from governments.

* Spot gold fell 1% to $ 1,710.71 an ounce at 1738 GMT, after falling earlier to $ 1,704.45. Gold futures in the United States closed down 0.7% at $ 1,723.80 an ounce.

* “Although the broader macro context continues to support gold prices in the short term, they are closely monitoring real yields. Returns on US bonds are rising and that ended up weighing on bullion prices,” said Suki Cooper, an analyst at Standard Chartered Bank.

* “The safe haven purchase has continued to support gold primarily through ETF (publicly traded funds) inflows and continued demand from retail investors (…) So if we see different economies starting to reopen, we could see that part of that demand for security begins to decrease, “he added.

* Stock markets rose as investors greeted news that more countries and states in the United States were seeking to ease confinements and Bank of Japan stimulus measures to cushion the economic impact of the coronavirus.

* Gold tends to benefit from broad stimulus plans, as it is often seen as a hedge against inflation and currency depreciation.

* Market players are now waiting for this week’s meetings of the Federal Reserve and the European Central Bank.

* Among other precious metals, palladium lost 4.3% to $ 1,937.22 an ounce, after collapsing as much as 6.7% to a near-week floor of $ 1,890.13. Platinum was stable at $ 759.50 and silver was down 0.8% at $ 15.12 an ounce.

(Edited in Spanish by Carlos Serrano and Manuel Farías)