Gold down more than 2% this Tuesday, March 21, because the return on Treasury bonds rose and the decreased fears about a banking crisis led some investors to cautiously return to riskier assetswhile the markets await the Federal Reserve interest rate decision.
He spot gold lost a 2.1%to $1,938.19 the ounce, and the gold futures in United States they also fell 2.1%to $1,941.10. Last Monday, the golden metal touched the u$s2.009,59his maximum since March 2022but has since regressed.
“In the market there was a little less risk aversion today (…) but it’s mostly strong profit-taking by shorter-term futures traders after gold prices hit 12-month highs yesterdaysaid Jim Wyckoff, a senior analyst at Kitco Metals.
Risk assets including stocks and oil rallied after the Credit Suisse bailout calm nerves about a major banking crisis. That made goldoften used as a safe asset during financial instability, lose attractiveness.
All eyes are on the Wednesday’s Fed policy decision and some of the leading experts they think it could pause further rate hikes.
“The surprise for the market would be if the Fed does nothingwhich It would probably be very bullish for metal markets.”Wyckoff said.
“We could see some marginal selling activity below the $1,950 an ounce markbut we expect the combination of strong physical demand and resurgent investor flows to prevent (gold) prices from falling,” TD Securities said in a note.
In other precious metals, the silver spot fell 1.2% to $22.25 an ounce; he platinum it yielded 2%, to u$s968.73; and the palladium it fell 1.7%, to u$s1,391.14.
Source: Ambito
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