Report

rss

Iraq News

Kurdistan

Economy

World

All News

PRECIOUS-Gold eases as higher yields, dollar outweigh Ukraine uncertainty

Category: Economy

Date: 2022-01-27T07:30:25+0000
PRECIOUS-Gold eases as higher yields, dollar outweigh Ukraine uncertainty

Shafaq News/ Gold prices extended losses on Thursday, as safe-haven demand driven by concerns over Ukraine was countered by strength in the U.S. dollar and Treasury yields as the Federal Reserve signalled interest rate hikes starting in March.

Spot gold dropped 0.3% to $1,812.87 per ounce by 0537 GMT, after closing 1.6% lower on Wednesday in its worst session since Nov. 22. U.S. gold futures fell 0.9% to $1,813.40.

“It’s confirmed that they’re (the Fed) going to raise rates. And that’s why we see the bump up in Treasury bills. And of course, people are selling gold,” said Brian Lan, managing director at dealer GoldSilver Central, adding that bullion was also pressured by a sturdy dollar.

Fed Chairman Jerome Powell struck a hawkish tone on Wednesday, flagging a rate increase in March and saying there was room for further policy tightening without hurting employment.

U.S. Treasury two-year yields climbed to a 23-month high at the start of Asian trading on Thursday, while 10-year yields hovered near one-week highs touched in the previous session.

Higher yields and interest rate hikes dent the appeal of bullion by raising the opportunity cost of holding non-interest paying gold.

The dollar index, as measured against six major trading currencies, rose to a level last seen on Nov. 22.

The United States said on Wednesday it had set out a diplomatic path to address sweeping Russian demands in eastern Europe, as Moscow held talks with Western countries and intensified its military build-up near Ukraine with new drills.

“Heightened geopolitical tensions have spurred some safe-haven interest, but gold prices tend to hold their value rather than rally significantly amid such a flight to safety,” said Standard Chartered analyst Suki Cooper.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose to a five-month high on Wednesday.

Spot silver fell 1% to $23.25 an ounce. Platinum slipped 1.3% to $1,017.51 and palladium shed 0.9% to $2,309.19.

 

Source: Reuters

 

related

Gold prices drop in the Iraqi capital today

Date: 2022-01-29 10:01:57
Gold prices drop in the Iraqi capital today

PRECIOUS-Gold prices ease as investors brace for Fed rate outlook

Date: 2021-11-03 07:56:40
PRECIOUS-Gold prices ease as investors brace for Fed rate outlook

Gold heads for worst monthly decline since 2016

Date: 2021-06-30 09:23:02
Gold heads for worst monthly decline since 2016

Gold is dropping for the fourth day

Date: 2020-09-24 07:04:37
Gold is dropping for the fourth day

Gold dips as dollar holds ground; U.S. jobs data in focus

Date: 2021-08-02 07:04:13
Gold dips as dollar holds ground; U.S. jobs data in focus

Gold prices inch up in the Iraqi capital today

Date: 2022-03-12 09:08:59
Gold prices inch up in the Iraqi capital today

Gold prices in the Iraqi local markets today

Date: 2021-11-10 08:48:09
Gold prices in the Iraqi local markets today

Gold rises as dollar sags; investors eye U.S. stimulus deal

Date: 2020-12-03 08:36:39
Gold rises as dollar sags; investors eye U.S. stimulus deal