Gold prices fall as US bond yields rise

I retreated gold prices In Tuesday’s trading, affected by higher US Treasury yields, investors looked for clues on the timetable for the US Federal Reserve’s rate hike from its policy meeting next week.

Gold prices today

By 08:10 AM GMT (11:10 AM GMT), the price of gold futures contract – February delivery – decreased by 0.03%, reaching the level of $ 1815.90 an ounce.

The price of immediate delivery also decreased for yellow metal by 0.2%, to $1,815.61 an ounce.

At the same time, the price of silver futures contracts – for March delivery – increased by 0.4%, recording $23.01 an ounce.

The spot platinum price decreased by 0.69%, recording $969.94 an ounce, while the spot palladium price rose by 0.13%, to record $1878.73 an ounce.

US Fed moves

Global investor interest remains steady at the Fed meeting US Federal On Jan. 25-26, after US bank officials indicated they would begin raising interest rates in March to tame inflation, which rose 7% last month from a year earlier — the fastest pace in nearly 40 years.

It is considered gold An inflationary hedge, but the metal is highly sensitive to higher US interest rates, which increases the opportunity cost of holding the non-interest bearing yellow metal.

Gold and coins – archive

US bonds

Yields on the benchmark 10-year US Treasury rose to a two-year high, reducing the allure of the non-yielding metal.

The fate of gold in the near term lies in the hands of the Federal Reserve and how quickly it raises rates over the next half year, said Stephen Innes, managing partner at SBI Asset Management.

He added that the yellow metal is likely to remain range bound and may turn negative Reuters.

geopolitical risks

“Every day we are trying to see how a hawkish Federal Reserve is for other geopolitical risks engulfing the market, such as the situation in Ukraine, which are still keeping the gold price on display at the moment,” Ennes said.

The United States said last week that it feared Russia would prepare a pretext to invade Ukraine if diplomacy failed to achieve its goals.

The Bank of Japan raised its inflation forecast for the fiscal year beginning in April, and said risks to the price outlook are equally balanced.

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