Spot gold XAU= was down 1.7% at $1,642.79 an ounce at 10:58 GMT and heading for its second straight weekly decline, down 1.8%. US gold futures GCv1 fell 0.5% to $1,672.10.
“Renewed dollar strength is pushing gold lower. The short-term outlook for the gold market is still in question as the market looks for a top in the dollar and especially for yields,” Ole said. Hansen, Head of Commodities Strategy at Saxo Bank. .
Dollar=USD jumped 0.9% to a new two-decade high against its rivals, making gold less attractive to other currency holders. Benchmark 10-year US Treasury yields US10YT=RR hit an 11-year high. USD/
A number of central banks, including the US Federal Reserve and the Bank of England, raised interest rates this week to rein in inflation and also stoked fears of a global recession (Full Story)(Story complete)(Complete story)
While gold is considered a safe investment in times of political and financial uncertainty, rising rates blunt its appeal since it earns no interest.
“There have been … safe-haven purchases as the war in Ukraine escalated. Nonetheless, the relentless rise in rates remains a headwind for gold as tighter monetary policies provide a solid foundation for both real yield and USD,” ANZ said. strategist Soni Kumari. (Whole story)
“Consumer price indices are expected to remain elevated and the Fed appears determined to bring inflation down. We expect gold prices to fall towards (the) $1,620/oz level and in below $1,600 an ounce.”
Caught in the wake of gold, spot silver XAG= fell 3.3% to $19.01 an ounce, palladium XPD= slipped 3.6% to $2,091.91 and platinum XPT= fell 2.7% to $875.97. All three metals were heading for weekly declines.
Spot gold XAU= was down 1.7% at $1,642.79 an ounce at 10:58 GMT and heading for its second straight weekly decline, down 1.8%. US gold futures GCv1 fell 0.5% to $1,672.10.
“Renewed dollar strength is pushing gold lower. The short-term outlook for the gold market is still in question as the market looks for a top in the dollar and especially for yields,” Ole said. Hansen, Head of Commodities Strategy at Saxo Bank. .
Dollar=USD jumped 0.9% to a new two-decade high against its rivals, making gold less attractive to other currency holders. Benchmark 10-year US Treasury yields US10YT=RR hit an 11-year high. USD/
A number of central banks, including the US Federal Reserve and the Bank of England, raised interest rates this week to rein in inflation and also stoked fears of a global recession (Full Story)(Story complete)(Complete story)
While gold is considered a safe investment in times of political and financial uncertainty, rising rates blunt its appeal since it earns no interest.
“There have been … safe-haven purchases as the war in Ukraine escalated. Nonetheless, the relentless rise in rates remains a headwind for gold as tighter monetary policies provide a solid foundation for both real yield and USD,” ANZ said. strategist Soni Kumari. (Whole story)
“Consumer price indices are expected to remain elevated and the Fed appears determined to bring inflation down. We expect gold prices to fall towards (the) $1,620/oz level and in below $1,600 an ounce.”
Caught in the wake of gold, spot silver XAG= fell 3.3% to $19.01 an ounce, palladium XPD= slipped 3.6% to $2,091.91 and platinum XPT= fell 2.7% to $875.97. All three metals were heading for weekly declines.
