Gold futures fell on Friday, on track for weekly losses as Treasury yields rose and the US dollar edged higher.
Gold for August delivery
fell $12, or 0.7%, to $1,793.40 an ounce on Comex. Silver September
fell 18.1 cents, or 0.7%, to $25.20 an ounce. Gold was down 1.2% on a weekly basis, while silver fell 2.3%.
Gold has depreciated in a volatile week across many financial asset markets. A sharp sell-off in equities and other assets seen as risky earlier in the week added to Treasury’s rally to safe-haven boosted 10-year bond yields.
to a five-month low.
However, investors flocked to buy down stocks, while the Treasury rally eased slightly, allowing yields to rise. The greenback is also solid, with the ICE US Dollar Index
is on track for a 0.2% weekly gain. A higher Treasury yield can increase the opportunity cost of holding an asset that has no value, while a stronger dollar makes commodities priced in this currency more expensive for buyers. use other currencies.
“The unhappiness elsewhere brings unhappiness to gold, but we still think there are underappreciated downside risks to prices,” said Christopher Louney, an analyst at RBC Capital Markets. now, as our current forecast suggests,” said Christopher Louney, an analyst at RBC Capital Markets.
“Economic data, Fed policy expectations, and news around prevailing COVID strains will continue to dominate both directly and indirectly (through dollar, exchange rate moves),” he wrote. and stocks).
But with prices just below the middle of their one-year range and with ETP (exchange product) outflows that have provided a significant portion of the recovery in May and therefore remain significantly down this year,” he said. the market remains largely unconvinced in the gold outlook despite the upside and inflationary gold headlines,” Louney said.
https://www.marketwatch.com/story/gold-edges-lower-heads-for-weekly-loss-11627044131?rss=1&siteid=rss | Gold edges lower, heads for weekly loss