© Reuters. The gold bars are displayed at the Ginza Tanaka store in Tokyo on September 18, 2008. Gold prices have entered negative territory as concerted action by the central bank to address liquidity in money markets has helped to recover the propensity to trade. risk, preventing the purchase of safe-haven assets
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(Reuters) – Friday fell more than 1.5% to its lowest level since April 2020, as the yellow metal’s appeal was undermined by a combination of factors starting with strength and rising yields. with the Federal Reserve (the US central bank) adopting a more aggressive stance aimed at containing inflation.
And it fell 1.6% to $ 1644.04 an ounce by 1757 GMT, after falling roughly 1.8% to $ 1640.20 at the start of the session.
And US gold futures lost 1.5% to $ 1,655.60 per ounce.
And gold is registering its second consecutive weekly decline of 1.8%.
“We are seeing a relentless rise in the dollar here, and that will keep gold vulnerable in the short term,” said Edward Moya, chief analyst at Wanda.
“The economy is clearly heading into a recession. The downside risks are high and this continues to drive inflows into the dollar, which is bad news for gold.”
The dollar jumped to a new high, the highest in two decades, against rival currencies, making gold less attractive to holders of other currencies. The yield on the benchmark 10-year US Treasury bond reached its highest level since April 2010.
Several central banks raised interest rates, following the impact of the US Central Bank, which raised interest rates for the third consecutive time by 75 basis points.
Although gold is seen as a hedge in times of political and economic uncertainty, rising interest rates undermine its appeal because it does not generate any returns.
As for other precious metals, in spot transactions it fell 4.1% to $ 18.84 an ounce and 4.8% to $ 2065.29. Platinum was also down 4.8% to $ 857.46. The three metals are posting a weekly decline.
(Prepared by Mustafa Saleh for the Arabic Bulletin)
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