“How US Data and the Rise of US Yields Cause Gold Prices to Fall – Analysis and Insights”

Arabictrader.com – Metal prices have been exposed Downward pressures during Thursday’s trading, due to several factors, most notably; The rise in the US and the US yields, after the positive US unemployment claims data for this week, which reinforced expectations that the US Federal Reserve will continue to raise interest rates at next week’s meeting.

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In terms of trading today, spot gold contracts recorded a decline of 0.37% and reached $1,981.76 an ounce, in addition to a decline in gold futures contracts by 0.01%, to settle near the level of $1,995.80 an ounce.

The rise in the US dollar index weakens gold price levels

The rise in the US dollar index caused a decline in the prices of the yellow metal, similar to today’s trading, as the dollar index measures the performance of the US currency against a basket of six other major foreign currencies, due to the existence of an inverse relationship between the dollar and gold. The US dollar weakens the attractiveness of the commodities denominated in it, especially gold prices, because it raises the costs of hoarding it. In this context, the dollar index recorded an increase of 0.29% and reached the level of 101.485 points, and this pushed gold prices to decline during trading.

The rise in US bond yields increases pressure on gold

At the same time, gold prices found noticeable pressure during today’s trading, due to the rise in US Treasury bond yields, as US bond yields for 10 years increased by 1.92% and reached the level of 3,496 points. Likewise, the US bond yields for 20 years rose by 1.33%, and recorded about 3.8565 points, which reinforced the decline in gold prices.

Also, the positivity of US unemployment benefits data for this week caused a decline in gold prices, as the number of applications for unemployment benefits in the United States rose less than expected and recorded about 230 thousand applications for this week, compared to expectations of 247 thousand applications, and this reinforced the possibilities that the US Federal Reserve will continue to raise Interest rates instead of expectations that it will stop raising it temporarily at its meeting scheduled for next week, to support the performance of the US dollar, and then reflect negatively on the movements of gold prices.

other precious metals prices

With regard to the prices of other precious metals, far from the prices of the yellow metal, we find that spot contracts decreased by 0.26% and reached $24.82, in addition to a decrease in platinum prices by 0.58% to reach $1,084.62. Likewise, prices declined by 1.19%, to record about $1,492.27.

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