Tuesday, May 28, 2024

Gold is recording weekly declines due to factors such as the appreciation of the dollar and the rise in interest rates

Date:

Gold fell 1% on Friday, on the way to recording its biggest weekly fall since mid-March, with signs of a sharp rise in the US Federal Reserve raising treasury yields and the dollar.

Gold on the spot traded down 0.9% at $ 1934.06 an ounce, after hitting a two-week low. The price has fallen 2.1% so far this week. US gold futures fell 0.7% to $ 1,934.3 an ounce.

Federal Reserve Chairman Jerome Powell said on Thursday that the half-point rate increase would be “on the table” when the central bank gathers in May.

In a bid to curb high inflation, the Federal Reserve extended its 10-year US Treasury dividend yields.

Although gold is considered a safe haven during high inflation, raising interest rates to control inflation increases the potential cost of holding precious metals that do not generate interest.

Among other precious metals, spot silver fell 1.6 percent to $ 24.24 an ounce, down 5.6 percent from late January to its biggest weekly decline. Platinum was down 3.9% at $ 930.04 an ounce and Palladium was down 1.7% at $ 2381.03.

(Reuters)

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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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