Gold Falls as Dollar, Bond Yields Jump



Gold was lower on Wednesday.

Investing.com – Gold fell to its lowest level since December on Wednesday, as the U.S. dollar surged and bond yields rose.

Comex for June delivery were down 0.15% to $1,288.40 a troy ounce as of 10:37 AM ET (14:37 GMT).

The price of bouillon was driven lower by the rise in the greenback. The , which measures the greenback’s strength against a basket of six major currencies, rose 0.15% to 93.28.

Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.

Meanwhile the precious metal was held back by rising bond yields. The yield on the benchmark Treasury note was at 3.085 after reaching a seven-year high of 3.089 on Tuesday.

Strong upbeat data this week has also made it more likely that the Federal Reserve will increase interest rates. U.S. rose in April, while increased at a slower rate than forecast. Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.

Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.

Elsewhere on the Comex, were up 0.22% to $16.305 a troy ounce. Among other precious metals, platinum fell 0.52% to $892.50 while palladium slipped 0.09% to $982.30 an ounce. futures increased 0.10% to $3.059 a pound.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)


Leave a comment