The dollar is trading at 10-month highs, while 10-year bond yields were trading at their highest level in 16 years.
The dollar was trading at 10-month highs, while 10-year bond yields were at their highest level in 16 years.
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Gold registers a decrease in its price, since it loses its attractiveness compared to a stronger dollar and an increase in the yields of Treasury bond. Investors are on tenterhooks, anticipating critical inflation data from the week to gain a better perspective on future inflation. interest rates In U.S.A.
Gold spot experienced a drop of 0.2%, reaching US$1,912.79 per ounce, marking its lowest level since September 15. In parallel, gold futures in the United States They lost 0.3%, reaching US$1,931.50.
Michael Hewsonchief analyst at CMC Markets, shared his analysis: “With the dollar once again taking the lead and yields hitting their highest since 2007, gold prices could face difficulty in regaining their most recent highs.“.
The dollar is trading at 10-month highs, while 10-year bond yields were trading at their highest level in 16 years, increasing the opportunity cost of owning bullionsince these are quoted in the US currency and do not generate interest.
This week, investors had their eyes on in the personal consumption price index (PCE), the inflation indicator preferred by the Federal Reserve, which would be published on Friday.
Hewson added: “If we get a solid PCE number that keeps the possibility of a rate increase in November in mindwe could observe a retraction in gold prices towards US$1,900.”
In the area of other precious metals, the silver experienced a reduction of 0.3%, reaching US$23.05 per ounce; the platinum suffered a 0.7% decline, hitting a 12-day low of $905.25; and palladium fell 0.6%, marking its lowest level in 14 days at $1,221.86.
Source: Ambito
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