Home National Good News! Gold prices fall as the dollar recovered slightly, check new rates

Good News! Gold prices fall as the dollar recovered slightly, check new rates

by Admin
0 comment 247 views Gold Rate read
JK News Live

Gold prices fell on Wednesday as the dollar recovered slightly, piling pressure on greenback-priced bullion alongside firm Treasury yields and an aggressive inflation stance by the U.S. Federal Reserve chief.

Spot gold dropped 0.2% to $1,810.49 per ounce, by 0557 GMT. U.S. gold futures slipped 0.6% to $1,808.10.

Gold has been consolidating since the end of last week but the overall direction is down, towards about $1,750, said Ilya Spivak, a currency strategist at DailyFX. “The question is when do we find fresh momentum to take us there?” Spivak said.

The dollar edged higher after a three-session slide, reducing the appeal of gold for investors holding other currencies. [USD/]

“Gold’s very focused on rates and the outlook for monetary policy, especially in the U.S.,” Spivak said, adding the dollar was not done rallying.

Fed Chair Jerome Powell on Tuesday pledged the U.S. central bank would ratchet interest rates as high as needed to kill a surge in inflation that he said threatened the foundation of the economy.

Benchmark U.S. 10-year Treasury yields steadied after a sharp rise in the previous session, hurting demand for zero-yield gold. [US/]

The Fed has raised its benchmark policy rate by three-quarters of a percentage point this year, and is on track to increase it again in half-percentage-point increments at its next two meetings in June and July.

Although seen as an inflation hedge, bullion is sensitive to rising U.S. short-term interest rates and bond yields, which increase the opportunity cost of holding it.

Also Read This  A Kid Accidentally Orders Furniture Worth Rs 1.4 Lakh Online on His Mother’s Phone

Reflecting investor sentiment, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,049.21 tonnes on Tuesday from 1,053.28 tonnes on Monday – the ninth straight daily drop.

Spot silver fell 0.2% to $21.57 per ounce, while platinum gained 0.2% to $953.32, and palladium eased 0.5% to $2,041.87

You may also like

Leave a Comment

Our Company

Welcome to JK News Live – online platform that brings the Latest News & Top Breaking headlines on Politics and Current Affairs in Jammu Kashmir and also covering Sports, Business, Conflict, Videos, Life Style, feature stories and much more.

Editor: Ehsaan Yousuf


@2021 – All Right Reserved.  Design & Developed By ThinkEast

error: Content is protected !!