Gold edges lower on higher US yields, firm dollar
April 6, 2022608 views0 comments
BY ONOME AMUGE
Gold prices weakened and extended losses for the third consecutive day as higher US Treasury yields and a steady US dollar dwindled investors’ appetite for the yellow metal.
Spot gold slipped 0.3 percent to $1,926.80 per ounce, while US gold futures was down 0.1 percent at $1,931.20 per ounce.
With the yellow metal bearish for the day while lacking any real longer-term, Craig Erlam, senior market analyst at OANDA, said that various asset classes are also undergoing a similar scenario, adding that rallies are failing a little earlier each time over recent weeks.
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Erlam however noted that there remains plenty of appetite for a safe haven and inflation hedge.
Ole Hansen, analyst at Saxo Bank remarked that the recent peak seen in the US real yields is keeping the gold market fairly locked in a range.
“The market remains torn between those investors looking towards gold as an offset against inflation, growth worries and high volatility in the bond market … against that we have the continued rise in yields,” Hansen stated.
For other precious metals, spot silver gained 0.6 percent to $24.65 per ounce, platinum was down 0.7 percent to $980.05 per ounce, and palladium rose 1.1 percent to $2,301.82 per ounce.