Home›Commodities›Precious Metals›Gold slips below recent highs as dollar and yields hol…

Gold slips below recent highs as dollar and yields hold firm

Gold was quoted near $4,382, down 0.8% on the day, while the 30-year US Treasury yield rose above 5.3% for the first time since 2007 before reversing.

Reported · Written up by our desk · Precious Metals

Gold prices moved lower on Tuesday, snapping a two day winning streak as a firmer US dollar and higher long term Treasury yields weighed on the non yielding metal, according to FXStreet.

At the time of writing, XAU/USD was around $4,382, down 0.78% on the day. The benchmark 10 year yield climbed toward 4.75%, while the 30 year yield rose above 5.30%, its highest since 2007, before both reversed during US trading hours, the outlet reported.

Higher yields can raise the opportunity cost of holding gold. Brown Brothers Harriman strategists also linked the pressure to a broader rate move as a recent leg higher in crude feeds through to yields and sentiment, even as the firm cautioned that the risk of further dovish Fed repricing could limit how deep USD gains run.

FXStreet said the US dollar index was around 99.60 after rebounding from 99.30 on Monday. It added that energy driven inflation concerns remained in focus alongside the US and Iran standoff over the Strait of Hormuz, while markets assigned about a 65% probability to the Fed holding rates unchanged at its next meeting using the CME FedWatch tool. Traders were set to watch the release of the FOMC meeting minutes and fresh Middle East developments.

Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%|Dollar index 99.64 ▼0.3%

More like this

Sources