The price of gold hit its lowest level in nearly two weeks on Wednesday as rising Treasury yields and a strengthening US dollar continued to undermine demand for green-priced bullion.
Gold hit its lowest level in nearly two weeks on Wednesday, although prices remained rangebound as demand for bullion as a safe haven helped offset sustained pressure from a stronger dollar and high yields of the US Treasury. A stronger dollar makes bullion more expensive for buyers holding other currencies, while gains in benchmark US 10-year Treasury yields reduce the appeal of zero-yield gold. Spot gold was steady at $1,835.28 an ounce, 0216 GMT, after hitting its lowest level since May 20 at $1,832.41 earlier in the session. US gold futures were down 0.6% at $1,838.20. The outlook for interest rates and the dollar, as well as geopolitical concerns are important factors for gold, and “these competing interests are keeping gold in a tight grip,” said Michael McCarthy, chief strategy officer at Tiger. Brokers, Australia. US President Joe Biden met with Federal Reserve Chairman Jerome Powell on Tuesday to discuss historic inflation that is draining US wallets, even as he assured the central bank chief he would be free from political interference . Bullion is seen as a hedge against inflation and a safe haven in times of political uncertainty, but the Fed’s hike in US short-term interest rates to combat rising costs increases the opportunity cost. holding gold. Russian troops fought to take full control of the eastern industrial city of Sievierodonetsk on Wednesday, as the United States said it would supply Ukraine with advanced rockets to help force Moscow to negotiate an end to the war. war. Gold’s bullish momentum since the May 19 rise has died down, McCarthy said, adding that a break above $1,830 an ounce could test levels just below 1,800. $, and that on the upside, prices would need to break above $1,870 to break the current sideways range. Spot silver was flat at $21.53 an ounce, while platinum gained 0.2% to $966.68 and palladium firmed 0.1% to $2,000.81. (Reporting by Bharat Govind Gautam Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips)