March 31, 2023

Dubai Week

Complete Dubai News World


Gold prices have been falling for the biggest week since November

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Gold has settled on Friday, since late November, under pressure from rising bond yields as traders prepare to quickly raise US Federal Reserve interest rates.

And gold rose 0.1 percent in immediate trade to $ 1790.90 an ounce (one ounce) at 0341 GMT, reducing its weekly decline to about two percent after two sessions. US gold futures rose 0.2 percent to $ 1,792.60.

“It is clear that the Fed’s attempt to control rising inflation raises yields,” said Kyle Rhoda, a researcher at IG Markets, adding that precious metals basically lose some appetite.

Benchmark yields on 10-year U.S. Treasury bonds are at an all-time high after March 2021, raising the potential cost of holding gold.

Gold is considered a hedge against inflation, but it is vulnerable to rising US interest rates, which increases the likelihood cost of holding a non-yielding yellow metal.

Among other precious metals, silver spot trades showed little change at $ 22.14 an ounce. Platinum was up 0.2 percent at $ 966.50 an ounce and Palladium was down 0.6 percent at $ 1,872.02.


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