Gold Price Sink to 5-Week Low as US Bond Yields, Dollar Rise

Investing.com – Gold prices fell to five-week lows as the dollar continued to advance amid a sharp uptick in Treasury yields.

for February delivery on the Comex division of the New York Mercantile Exchange fell by $13.30, or 1.00%, to $1,316.20 a troy ounce.

The rose to four-year highs sparking a move higher in the dollar, pressuring gold to five-week lows following news that the Senate agreed a budget deal.

Senate leaders reached a major budget agreement that would increase spending caps, Majority Leader Mitch McConnell said Wednesday.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A rise in the dollar makes gold more expensive for holders of foreign currency and thus, reduces demand.

Also weighing on the yellow metal was a tick lower in safe-haven demand amid easing geopolitical uncertainty following reports that German Chancellor Angela Merkel’s Christian alliance and the Social Democrats (SPD) agreed a coalition deal, paving the way for a new government.

In other precious metal trade, fell 1.87% to $16.27 a troy ounce, while fell 1.27% to $981.70.

fell 3.07% to $3.09, while 1.85% to $2.71.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.