Wednesday, June 19, 2024

Gold is headed for its worst performance in 7 weeks as the dollar continues to strengthen



Gold prices came in better than expected last Friday, ignoring US inflation data. The dollar and US bond yields continued to strengthen as gold prices headed for their worst weekly performance in seven weeks.

Spot gold was up 0.2 percent at $1916.53 an ounce by 0727 GMT, but it was trading near its lowest level since July 7, which it touched earlier in the day. US gold futures were at $1948.80.

Gold posted gains of 0.8% on Thursday after data showed the U.S. consumer price index rose less than expected in July, adding to challenges that the U.S. Federal Reserve will not raise interest rates again in 2023.

A rise in interest rates generally raises bond yields, thereby increasing the opportunity cost of holding non-yielding gold.

Gold prices fell about 1.3 percent this week, while the dollar index and 10-year Treasuries headed for a fourth straight week of gains.

As for other precious metals, silver was up 0.2 percent at $22.72 an ounce and platinum was up 0.6 percent at $912.04 in spot trades, though they were headed for a fourth straight week of record losses.

Palladium rose 0.3% to $1,290.43, marking its best weekly performance since mid-June.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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