Gold fell on Monday, touching a six-week low earlier in the session, as prices remain under pressure due to the rise in the dollar and US Treasury yields.
Spot gold fell 1.7 percent to $ 1816.53 an ounce, its lowest level since the second of December, and it fell 0.5 percent to $ 1839.89. Prices fell 4.4 percent on Friday.
US gold futures rose 0.3 percent to $ 1839.90.
“The glory days of gold are over,” said Stephen Ince, chief market strategist at Axi, “The glory days of gold are over.” The high US returns have started to seriously affect gold and many positions continue to exit the market, as they were not prepared for those moves in the US dollar.
The yield on US Treasury bonds for ten years held high above 1 percent, which helped the dollar reach its highest level in nearly three weeks against competing currencies, which increases the cost of gold.
The higher yield increases the opportunity cost of holding the yellow metal.
Investors also took into account the statements of Richard Clarida, Vice Chairman of the Federal Reserve (US Central Bank), who said on Friday that the US economy is heading to a “wonderful” year with the support of Corona virus vaccines and the possibility of increased government spending.
As for other precious metals, silver fell 2.5 percent to $ 24.72 an ounce, after falling 4.2 percent earlier in the session.
Platinum fell 2.4% to $ 1,038.98, while palladium rose 1.1% to $ 2,397.07.
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