15.1 C
New York
Friday, September 22, 2023

Gold hits 2-week low amid rising US yields, dollar

LONDON: Gold prices slid to a two-week low on Wednesday on a stronger dollar and US Treasury yields amid renewed global inflation concerns that could prompt aggressive monetary policy measures.

Spot gold was down 0.4% to $1,830.66 per ounce by 1147 GMT, after hitting its lowest since May 19 at $1,827.80. US gold futures were down 0.9% at $1,832.50.

Rising real yields in the United States and continental Europe and a firm dollar are negative factors for gold, said analyst Peter Fertig at Quantitative Commodity Research.

“Gold could see some support only if the central banks don’t do their job properly to fight inflation.”

The dollar index was up 0.2% lifted by higher Treasury yields.

Markets have priced half-point interest rate rises from the Fed this month and next, though uncertainty lingers about the outlook beyond.

US President Joe Biden on Tuesday met with Federal Reserve Chair Jerome Powell to discuss historic inflation that is draining American wallets.

Bullion is considered a hedge against inflation and a safe haven during times of political and economic uncertainty. However, higher US interest rates increase the opportunity cost of holding gold and boosts the dollar in which the bullion is priced.

Euro zone inflation data was much higher than expected on Tuesday, a week before a crucial European Central Bank policy meeting.

“There is no sign that inflation will fall anytime soon. In our opinion, the inflation figures will exert renewed pressure on the ECB to end its ultra-loose monetary policy,” Commerzbank analyst Daniel Briesemann said in a note.

Spot silver rose 0.2% to $21.58 per ounce, having hit a two-week low earlier.

Both platinum and palladium were up 1.1% at $975.53 and $2,021.23 per ounce, respectively.

Gold hits 2-week low amid rising US yields, dollar

Source: Brecorder

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles

Popular Articles