Gold prices are falling, recording their lowest level in two months - Energy

Gold prices fell on Wednesday, as rising US Treasury yields and the Federal Reserve’s announcement of interest rate hikes dented demand for zero-yielding bullion.

Gold prices ended Tuesday’s trading on a rise, recovering from its lowest level since mid-February, which it recorded in early trading in the previous session.

Gold prices today

By 09:11 AM GMT (12:11 PM GMT), gold futures prices – for June delivery – fell 0.17%, at the level of $ 1867.40 an ounce.

The price of spot delivery of the yellow metal decreased by 0.01%, to reach $ 1867.89 an ounce.

Regarding other metals, the price of silver contracts – for July delivery – decreased by 0.11%, to $22.64 an ounce.

On the other hand, the spot palladium price rose 0.72%, recording $2278.15 an ounce, and the spot platinum price rose by 1.24% at $978.50 an ounce.

US bonds

US 10-year Treasury yields stabilized ahead of a widely expected interest rate hike by the US Federal Reserve, which is trying to contain spiraling inflation in the US.

While gold is seen as a hedge against inflation, higher interest rates and short-term US bond yields tend to increase the opportunity cost of holding non-yielding bullion.

The US Federal Reserve’s Federal Open Market Committee is scheduled to release a statement on its monetary policy at 06:00 PM GMT (9:00 PM GMT), followed by a press conference by Federal Reserve Chairman Jerome Powell.

Gold prices today
Gold and coins – archive

interest rates

Market participants are anticipating a decision to raise benchmark overnight rates and details on reducing the Federal Reserve’s $8.9 trillion balance sheet.

“A 50 basis point rally is now being determined by the markets… If the statement still has a more hawkish bias, gold is likely to come under pressure again,” said Oanda chief analyst Jeffrey Haley.

“If the statement remains mostly unchanged in its guidance, a short-term rebound in gold to $1,880 is likely as the US dollar is likely to decline,” he added.

The dollar has remained close to 20-year highs, making gold priced in US dollars less attractive to overseas buyers.

Bullion is seen as a safe store of value in times of economic and political crisis.

Demand for platinum

For his part, UPS strategist Giovanni Stonovo noted that auto supply chain constraints, including chip shortages, are still having a negative impact on auto production and platinum demand.

He said that restocking cars, once supply chain bottlenecks are eased, would boost demand for platinum – used in auto-catalysts.

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