Gold prices fell yesterday as the dollar and US Treasury yields rose, with the latest data on inflation awaiting this month’s Federal Reserve meeting related to monetary policy.
And gold fell in spot transactions 0.1 percent to $ 1850.50 an ounce by 11:55 GMT, keeping the movement within a relatively narrow range, while there was little change in the US gold futures contracts to reach $ 1853.40.
“Sentiment is completely mixed, and this is leading to that sideways trading,” said Ole Hansen, analyst at Saxo Bank, adding that “gold needs to break the $1870 barrier to gain some new momentum.”
He added, “Developments in both treasury yields and the dollar are not favorable to gold… But in return, we have the World Bank lowering the global growth forecast to take into account.”
Yesterday, the World Bank cut its forecast for growth in 2022 by regarding a third, and warned of the high risks of stagflation, which provides some support for gold as an asset that is considered safe havens for value.
Meanwhile, US consumer price data may provide indications of whether the Federal Reserve will continue its interest rate hike policy.
Expectations that the Federal Reserve will raise interest rates at its meeting this month helped the dollar index rise 0.2 percent, and kept US Treasury yields for ten years near the main level of 3 percent.
As for other precious metals, the price of silver fell 0.9 percent to $ 22 an ounce, platinum fell half a percent to $ 1005.89, and palladium fell 0.9 percent to $ 1965.31.
In addition, the euro hit a seven-year high once morest the Japanese yen, supported by an upward revision of first-quarter growth data and ahead of today’s European Central Bank meeting, likely to pave the way for a rate hike later this year. The European Central Bank is scheduled to end its bond purchases this month, which means that a rate hike might start in the second half of 2022, making the Bank of Japan the only central bank among its peers to implement a policy of monetary easing.
The price of the yen fell for the tenth consecutive session once morest the euro, which is its first decline in eight months, and reached its lowest level in seven years, recording 143.89 yen per euro in European trading.
The euro rose 0.2 percent once morest the dollar to 1.07225 dollars, following falling earlier by 0.3 percent, following an upwardly revised economic growth data in the euro zone in the first quarter of the year.
The dollar index, which measures the performance of the US currency once morest six major currencies, including the euro and the yen, rose 0.1 percent to 102.53.
The price of the pound sterling fell 0.4 percent to $ 1.2540, with the pound affected by political risks and a slowing economy. In terms of cryptocurrencies, Bitcoin fell 2.4 percent, but remained above the $30,000 level, and Ether fell 0.5 percent to $1,802.
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