The prices of gold fell this Wednesday, June 7, weighed down by a rising US bond yieldswhile investors eagerly await the inflation data and the meeting of the Federal Reserve next week to know more clearly the path of interest rates.
He spot gold yielded this wednesday june 7th 1.2%, au$s1,957.05 the ounce, after two raises to the thread.
The 10-year Treasury yield was trading at its highest in more than a week.. The dollar index stabilized against its rivals.
Due to the rise in US bond yields, gold rebounded
“Yields have remained relatively high, putting slight pressure on the gold market”said David Megerof High Ridge Futures.
“It is clear that inflation continues to be the main focus of attention in this market. Right now, the expectation is that the Fed is going to pause. However, if those inflationary numbers remain extremely high, you could see a change in outlook,” he added.
He US inflation report May, which will be published on June 13, before the meeting of the fedwill provide investors with more clarity on the health of the world’s largest economy.
The Fed is not expected to raise rates for the first time in more than a year at its June 13-14 meeting, according to economists.
Gold prices are very sensitive to rate hikes in the United Statessince they increase the opportunity cost of holding bullion, which does not earn interest.
In other precious metals, silver fell 0.4% to $23.48 an ounce; platinum fell 1.1% to $1,020.75; and palladium fell 1.2% to $1,395.99.
Source: Ambito
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