Gold Slides on Higher US Treasury Yields, Dollar

외신뉴스
2023-04-20 02:30 AM

Gold Slides on Higher US Treasury Yields, Dollar


Prices of gold, and other precious metals, fell on Wednesday due to stronger U.S. yields and national currency. The decline comes on the backdrop of expectations of new interest rate increases next month amid persistent inflation in the United States and elsewhere. Gold and Silver Slip as Investors Bet on Another Rate Hike in May


Gold prices dropped more than 1% on April 19 on higher U.S. yields and a more expensive dollar, with a number of investors now convinced that the United States Federal Reserve is likely to postpone a pause in interest increases.


Spot gold was down 1.7% at $1,970.31 per ounce by 12:00 GMT, while U.S. gold futures were down 1.9% to $1,982.20, Reuters reported. Gold was trading below its 21-day moving average of around $1,990. At the same time, silver dropped 1.9% to $24.73 per ounce while platinum was down 1.5% to $1,066.42.


The decrease in the prices of precious metals was preceded by the rising of benchmark U.S. Treasury yields to an almost one-month high, which increased the value of the U.S. dollar and made gold less affordable for buyers paying with other currencies.


According to Ole Hansen, head of commodity strategy at Saxo Bank, the correction was due to the markets readjusting their expectations of the Fed’s rate-hike path. He predicted that gold will rally again once interest rates peak.


On Tuesday, St. Louis Federal Reserve Bank President James Bullard said that America’s central bank should continue to raise rates amid persistent inflation. Other Fed representatives are also expected to comment ahead of the monetary authority’s decision in May.


Meanwhile, despite the eurozone inflation easing in March, core indicators remain high and members of the European Central Bank’s Governing Council stated that Europeans are likely to see another interest rate increase after their meeting in early May. With the U.K. experiencing the highest inflation in Western Europe, the same can be expected from Bank of England as well. Tags in this story Bank of England, Central Bank, Dollar, ECB, Eurozone, Expectations, Fed, Federal Reserve, Futures, gold, Hike, hikes, increase, inflation, interest rate, interest rates, Precious Metals, Price, Prices, rate, rates, silver, Treasury Yields, uk, US, US Dollar


What are your predictions about gold prices in the near future? Share them in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Stop the Presses: Criticism Against the New York Times Mounts as Newspaper Is Accused of Killing 59 Million Trees Annually NEWS | 2 hours ago Hong Kong Judge Rules Crypto Assets as ‘Property,’ Following Similar Rulings Worldwide NEWS | 4 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSpace and Time and Microsoft Make Blockchain Data Accessible on Azure Marketplace Next articleHong Kong Judge Rules Crypto Assets as ‘Property,’ Following Similar Rulings Worldwide Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms

외신뉴스
Crypto news


함께 보면 좋은 콘텐츠

All posts
Top