Independent analyst Ross Norman noted that “adding to gold’s woes at the moment is the strength of the dollar and the significant rise in 10-year Treasury yields.”
Yields on the 10-year U.S. benchmark paper rose above 2.5% to their highest level since May 2019, on bets on big rate hikes by the Federal Reserve to fight inflation.
Gold is highly sensitive to rising US interest rates because they increase the opportunity cost of holding bullion, while boosting the dollar in which it trades.
The dollar index rose to a high in more than a week, making gold more expensive for holders of other currencies.
With Russia-Ukraine peace talks due this week in Turkey, Ukrainian President Volodymyr Zelensky has insisted on his country’s territorial integrity after earlier suggesting he was willing to compromise.
Silver fell 1.9% to $25.02 per ounce and platinum fell 1.3% to $989.50, while palladium fell 3.2% to $2,261.39.
Source: Ambito
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