Gold prices under pressure as dollar and bond yields rise

Dow Jones2021-10-06

Gold futures traded lower Wednesday, and were headed for a second session of losses in a row as yields for government debt added to gains and the dollar strengthened, weighing on buying sentiment for bullion.

December gold fell $11, or 0.6%, to $1,749 an ounce, after easing 0.4% to settle at $1,760.90 an ounce on Tuesday. Silver for December delivery dropped 0.3%, or 1.3%, to $22.30 an ounce, after a 0.2% decline a day earlier.

The downbeat trade in precious metals came as yields on the 10-year Treasury note hit a high in overnight Asia trade at 1.57%, but was trading at a basis point to 1.538%. The dollar , meanwhile, climbed 0.5%, as gauged by the ICE U.S. Dollar Index.

Richer yields can weaken appetite for nonyielding precious metals, while dollar strength can make commodities priced in the currency more expensive to overseas buyers. U.S. stock futures pointed to losses for Wall Street as those bond yields rose.

Investors were waiting for private-sector payrolls data due at 8:15 a.m. Eastern Time, which comes ahead of Friday's jobs data that is expected to show 425,000 jobs were added last month.

"As long as the report comes out as 'decent,' the Federal Reserve will continue with its plan to wind down quantitative easing," said Naeem Aslam, chief market analyst at AvaTrade, in a note to clients.

"Although inflation is on the rise and the precious metal is seen as a hedge against rising consumer prices, a reduction in the Fed's stimulus and an uptick in interest rates are going to increase the opportunity cost of holding gold and push its price down," he said.

Among other metals on Comex, December copper shed 1.6% to $4.125 a pound. January platinum declined 0.9% to $950 an ounce, while December palladium fell 1.6% to $1,868 an ounce.

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精彩评论

  • am56
    2021-10-06
    am56
    Buy the dip
  • Benlaps
    2021-10-06
    Benlaps
    Normal
  • Onlyme
    2021-10-06
    Onlyme
    Like plz
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