© Reuters.
Written by Ambar Warrick
Investing.com – Gold prices fell sharply in Asian trading on Wednesday, before extending losses ahead of the US market open and markets await more clues about US monetary policy from a series of upcoming Federal Reserve speakers and reports.
now
And it fell to 1997.05, down by 1.12%, in a downward correction after a strong ascent series in recent weeks, and spot contracts fell today to $ 1984.13 an ounce now, at exactly four thirty in Riyadh time. And the yellow metal trims its losses, which amounted to about 1.8% in daytime trading. It is trading at 25,210, down by 0.2% only.
This comes in light of the rise in US Treasury yields, as the yields of the 10-year Treasury bonds rose by 1.12% to 3.612% now, and the yields of the two-year Treasury bonds rose to 4.2459%, after rising by 1.12%.
Look at the gold case
The yellow metal had regained the 2000 level on Tuesday as yields and yields declined after the recent rebound rally. But further gains were held up by growing uncertainty about the path of US interest rates, with recent hawkish signals from Fed speakers spooking the markets.
However, gold remained relatively well bid amid fears of an economic slowdown this year, as the global economy feels the impact of higher interest rates.
Important reports that control the movement of gold
The focus is now squarely on a slew of signals from the Federal Reserve, starting with the economic report due later on Wednesday. Fed Governors and Lisa are also scheduled to speak on Thursday and Friday, respectively.
While hawkish comments from Federal Reserve officials, along with some signs of resilience in the US economy, have raised renewed concerns that US interest rates may rise more than expected.
Fed forecast
It shows markets pricing in an 85% chance of a 25 basis point increase in May, followed by a 19% chance of a similar move in June. Markets were initially pricing in the prospect of a June rate hike being overlooked, with most still expecting the Fed to pause.
The prospect of higher interest rates also bodes weak for gold and other metals, as it increases the opportunity cost of holding non-yielding assets. But precious metals have benefited from increased safe-haven demand, amid fears that higher interest rates will hurt economic growth this year.
other precious metals
Other precious metals also fell slightly on Wednesday. It fell 0.2%, while it lost 0.3%.
Among the industrial metals, copper prices fell on Wednesday, taking a bit of support from stronger than expected.
It also fell 0.4% to $4.0755 a pound.
While the Chinese economy rebounded more than expected in the first quarter of 2023, signs of continued weakness in the manufacturing sector raised concerns about commodity demand in the world’s largest copper importer.
