Gold prices drop on dollar, Treasury yields recovery; Spot gold down to $1,84.89 per ounce
Spot gold was down 0.6% at $1,845.89 per ounce as of 0104 GMT. US gold futures were flat at $1,849.20.
- Jun 17, 2022,
- Updated Jun 17, 2022 8:20 AM IST
Gold prices fell on Friday, as the dollar and US Treasury yields recovered after declining in the previous session and put bullion on track for its biggest weekly drop in a month.
FUNDAMENTALS
* Spot gold was down 0.6% at $1,845.89 per ounce as of 0104 GMT. US gold futures were flat at $1,849.20.
* Benchmark US 10-year Treasury yields strengthened after a sharp fall on Thursday, weighing on demand for non-yielding gold.
* The dollar index also rose, making greenback-priced bullion less attractive.
* World stocks plummeted again on Thursday, after a series of rate rises from global central banks rekindled fears that aggressive policy tightening could drag economies into recession.
* Gold prices have fallen about 1.3% in what has been a volatile week, and its worst since mid-May, after starting it near a one-month peak before hitting a four-week low on Tuesday.
* The US Federal Reserve announced its biggest interest rate hike since 1994 on Wednesday, as it scrambles to rein in soaring inflation. Rising rates in the United States increase the opportunity cost of holding gold.
* The Bank of Japan is likely to maintain ultra-low interest rates in its policy meeting later in the day and stress its resolve to support a fragile economy with massive stimulus, a move that may further weaken the yen by highlighting a policy divergence with the rest of the world. Read full story
* Spot silver fell 0.9% to $21.73 per ounce, and is down about 0.7% this week.
* Platinum dipped 0.9% to $942.44, and has dropped about 3.2% for the week.
* Palladium rose 0.2% to $1,869.24, but is still set for a third consecutive weekly fall, having lost about 2.6%.
Gold prices fell on Friday, as the dollar and US Treasury yields recovered after declining in the previous session and put bullion on track for its biggest weekly drop in a month.
FUNDAMENTALS
* Spot gold was down 0.6% at $1,845.89 per ounce as of 0104 GMT. US gold futures were flat at $1,849.20.
* Benchmark US 10-year Treasury yields strengthened after a sharp fall on Thursday, weighing on demand for non-yielding gold.
* The dollar index also rose, making greenback-priced bullion less attractive.
* World stocks plummeted again on Thursday, after a series of rate rises from global central banks rekindled fears that aggressive policy tightening could drag economies into recession.
* Gold prices have fallen about 1.3% in what has been a volatile week, and its worst since mid-May, after starting it near a one-month peak before hitting a four-week low on Tuesday.
* The US Federal Reserve announced its biggest interest rate hike since 1994 on Wednesday, as it scrambles to rein in soaring inflation. Rising rates in the United States increase the opportunity cost of holding gold.
* The Bank of Japan is likely to maintain ultra-low interest rates in its policy meeting later in the day and stress its resolve to support a fragile economy with massive stimulus, a move that may further weaken the yen by highlighting a policy divergence with the rest of the world. Read full story
* Spot silver fell 0.9% to $21.73 per ounce, and is down about 0.7% this week.
* Platinum dipped 0.9% to $942.44, and has dropped about 3.2% for the week.
* Palladium rose 0.2% to $1,869.24, but is still set for a third consecutive weekly fall, having lost about 2.6%.