February 7, 2023

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Gold is falling as the value of the dollar rises to a 20-year low

Gold is falling as the value of the dollar rises to a 20-year low

LONDON (Reuters) – Gold fell on Monday as the dollar rose for two decades, reducing the dollar’s attractiveness to holders of other currencies, while US Treasury yields put further pressure on rising prices. On the spot, gold fell 0.7 percent to 08.17 GMT an ounce (one ounce), and US gold futures fell 0.8 percent to $ 1867.90. The dollar rose as investors sought a safe haven for profit, amid growing concerns about a slowdown in global economic growth and rising interest rates. And the US 10-year bond yield is at its highest level since November 2018, putting pressure on the non-yielding price of yellow metal. Although gold is a safe haven and a store of value during political and economic crises, it is highly sensitive to short-term US interest rates and bond yields, increasing the potential cost of holding gold. But a research note by ANZ researchers believes that concerns about the slowdown in global economic growth due to the rapid rise in inflation and growing political risks should somewhat protect the price of gold. Among other precious metals, silver was down 0.6 percent at $ 22.21 an ounce, platinum was down 1.2 percent at $ 951.34 and palladium was up 2.4 percent at $ 2,095.53.

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