Gold on MCX settled down -0.57% at 30997 tracking weakness from Comex Gold price while fell sharply earlier in the week yesterday also settled at $1,291.50/oz tumbling to a 5-month low amid speculation the Federal Reserve will raise interest rates in June.
A stronger dollar also dented gold prices. Yesterday Gold prices recovered losses after falling to a session low of $1,285.70 as the dollar retreated from a five-month high, while the 10-year treasury yield met resistance after hitting a nearly seven-year high.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding gold as it pays no interest.
No comments:
Post a Comment