Gold and precious metals prices are declining in conjunction with the rise of the dollar. Gold is usually considered a hedge once morest inflation, but it does not generate returns, so it is sensitive to interest rates and US Treasury yields.
-
Gold and precious metals prices fall with the rise of the dollar
Gold and other precious metals prices fell today, Thursday, as palladium lost more than 8 percent, as investors sought to buy the dollar, supported by bets that the Federal Reserve (the US central bank) will stick to its policy to tighten monetary policy rapidly.
And gold fell in spot transactions 0.7 percent to $ 1839.01 an ounce by 1429 GMT.
US gold futures fell 0.7 percent to $1,841.60 an ounce.
The dollar jumped to new highs in 20 years, which makes the precious metal less attractive to holders of other currencies.
Gold is usually considered an inflation hedge, but it does not generate returns, so it is sensitive to interest rates and Treasury yields.
US 10-year Treasury yields fell to their lowest level in two weeks, limiting gold’s losses.
As for other precious metals, silver fell in spot transactions 2.1 percent to $21.11 an ounce, following hitting its lowest level since July 2020 earlier in the session.
And platinum fell four percent to 952.86 dollars an ounce. And palladium lost 5.4 percent to record 1926.13 dollars an ounce.