Gold prices fell to their lowest levels since March 2021 due to the rise in US Treasury yields and the rise of the dollar.
-
Spot gold fell 1.2% to $1,674.99 an ounce.
Gold prices fell to their lowest levels since March 2021, today, Thursday, due to the rise in US Treasury bond yields and the rise of the dollar, and bets that the Federal Reserve (the US central bank) will raise interest rates by a large percentage, once once more, reduced the attractiveness of the yellow metal. .
And gold fell in spot transactions 1.2% to $ 1674.99 an ounce (an ounce), by 14:50 GMT, and US gold futures fell 1.1% to $ 1690.90.
And gold trimmed losses, for a while, following investors evaluated data that showed US retail sales unexpectedly rose in August, while separate data showed that weekly jobless claims in the United States fell by 5,000 to 213,000 adjusted applications, on a seasonally adjusted basis last week. .
The markets have already absorbed the interest rate hike by at least 75 basis points, at the end of the US Federal Reserve meeting, next week, and the hike may reach 100 basis points.
Gold is usually considered a tool to avoid inflation but does not generate a return, so it is sensitive to interest rates and Treasury yields.
In turn, the head of the International Monetary Fund, Kristalina Georgieva, said today, Wednesday, that central bankers should persevere in the fight once morest inflation on a large scale.
As for other metals, silver fell in spot transactions by 1.9% to $ 19.31 an ounce, and platinum increased 0.5% to $ 910.52, while palladium fell 0.7% to $ 2149.35.
“The strength of the dollar index this week, along with rising US Treasury yields and some US inflation data, has left gold and silver buyers mostly on the fence,” Jim Wyckoff, an analyst at Kitco Metals (one of the world’s providers of precious metals), said in a note. margin”.