Gold Falls as Dollar, Bond Yields Rise
Gold prices weakened for a fifth-straight session early on Friday while the United States dollar and bond yields inched higher as investors look to cut risk. Market data shows that Gold for December delivery was last seen down US$2.20 to US$1,769.00 per ounce.
The drop comes as investors move to the safety of the dollar with European stock markets mostly weaker and futures point to a lower open for US markets. The ICE dollar index rose to the highest in a month and was last seen up 0.47 points to 107.95 after earlier touching 108.08.
Bond yields are also on the rise, and bearish for gold since it offers no interest. The US 10-year note was last seen paying 2.968%, up 8.7 basis points. READ: Gold Price Spikes as U.S Bond Yields Peak
“The seemingly on-again, off-again forces buffeting gold prices are really the same themes impacting gold on a continuous and
ongoing basis, it’s just that as expectations gyrate around inflation, economic outcomes, and Fed policy, the back-and-forth means shifting between headwinds and tailwinds for gold prices,” RBC Capital Markets commodities strategist Christopher Louney said in a note. #Gold Falls as Dollar, Bond Yields Rise
