Gold falls to its lowest level in two and a half years, with the rise of the dollar

Gold prices fell more than 1.5% to the lowest level since April 2020, today, Friday, as the attractiveness of the yellow metal was undermined by a combination of factors starting with the strength of the dollar and rising US Treasury yields, with the Federal Reserve (the US central bank) adopting a more hawkish stance with the aim of curbing inflation.

And gold fell in immediate transactions 1.6 percent to $ 1644.04 an ounce (an ounce) by 17:57 GMT, after it fell by about 1.8 percent to $ 1640.20 earlier in the session.

And US gold futures lost 1.5 percent, to settle at $1,655.60 an ounce.

Gold is heading for the second consecutive weekly decline, by 1.8%.

“We are seeing a relentless rally in the dollar here, and that will keep gold vulnerable in the short term,” said Edward Moya, chief analyst at Wanda.

“It is clear that the economy is heading into a recession. The risks of a hard landing are high, and this is still driving the flows towards the dollar, which is bad news for gold.”

The dollar jumped to a new high, the highest in two decades against rival currencies, which makes gold less attractive to holders of other currencies. The yield on the benchmark 10-year US Treasury bond is the highest since April 2010.

A number of central banks raised interest rates, following the impact of the US Central Bank, which raised interest rates for the third time in a row by 75 basis points.

Although gold is seen as a hedge in times of political and economic uncertainty, raising interest rates weakens its attractiveness because it does not generate any return.

As for other precious metals, spot silver fell 4.1% to $18.84 an ounce, and palladium fell 4.8% to $2065.29. Platinum also fell 4.8% to $857.46.

(function() {
var script_gpt = document.createElement(‘script’);
script_gpt.async = true;
script_gpt.type=”text/javascript”;
script_gpt.src=”https://www.googletagservices.com/tag/js/gpt.js”;

var script_facebook = document.createElement(‘script’);
var content = document.createTextNode(“!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);fbq(‘init’, ‘476473863101467’);fbq(‘track’, ‘PageView’);”);
script_facebook.appendChild(content);

var noscript_facebook = document.createElement(‘noscript’);
var noscript_img = document.createElement(‘img’);
noscript_img.setAttribute(“height”, “1”);
noscript_img.setAttribute(“width”, “1”);
noscript_img.src=”https://www.facebook.com/tr?id=476473863101467&ev=PageView&noscript=1″;
noscript_facebook.appendChild(noscript_img);

/*WEB-10043 Native Ads*/
var pahtzh = document.createElement(‘script’);
pahtzh.async = true;
pahtzh.src=”https://pahtzh.tech/c/alroeya.com.js”;

setTimeout(
function(){
document.getElementsByTagName(‘HEAD’).item(0).appendChild(script_gpt);
// document.getElementsByTagName(‘HEAD’).item(0).appendChild(pahtzh);
// document.getElementsByTagName(‘HEAD’).item(0).appendChild(script_tagmanager);
document.getElementsByTagName(‘HEAD’).item(0).appendChild(script_facebook);
document.getElementsByTagName(‘HEAD’).item(0).appendChild(noscript_facebook);
// document.getElementsByTagName(‘BODY’).item(0).prepend(noscript_tagmanager);
},3500
);

})();

The news from the source






news source

Tags

Related Articles

Close