Gold Closes with Loss as Dollar and Treasury Yields Rise
On Thursday, gold experienced a decline in its value due to the surge in treasury yields and the strengthening of the dollar.
The August delivery of gold closed down by US$9.90, settling at US$1,970.90 per ounce.
The dollar's rebound from 15-month lows, seen in the previous week, contributed to making gold more expensive for international buyers. The ICE dollar index showed an increase of 0.55 points, reaching 100.83.
Additionally, rising treasury yields presented a challenge for gold as it raised the carrying cost of owning the precious metal, given that it offers no interest. The yield on the US two-year note increased by 6.0 basis points to 4.841%, while the yield on the 10-year note rose by 10.2 basis points to 3.856%.
Despite the recent setback, gold remains close to its two-month highs, largely driven by expectations that the Federal Reserve will conclude its tightening cycle with another 25 basis point increase. This increase is likely to occur during the central bank's policy committee meeting next week, following reports of lower-than-expected inflation and retail sales in June, which indicate a slowdown in the economy due to higher rates.
GOLD
SELL 1970 - 1972💯💯
✅ TP1: 1965
✅ TP2: 1960
✅ TP3: 1955
🛑 SL: 1980
On Thursday, gold experienced a decline in its value due to the surge in treasury yields and the strengthening of the dollar.
The August delivery of gold closed down by US$9.90, settling at US$1,970.90 per ounce.
The dollar's rebound from 15-month lows, seen in the previous week, contributed to making gold more expensive for international buyers. The ICE dollar index showed an increase of 0.55 points, reaching 100.83.
Additionally, rising treasury yields presented a challenge for gold as it raised the carrying cost of owning the precious metal, given that it offers no interest. The yield on the US two-year note increased by 6.0 basis points to 4.841%, while the yield on the 10-year note rose by 10.2 basis points to 3.856%.
Despite the recent setback, gold remains close to its two-month highs, largely driven by expectations that the Federal Reserve will conclude its tightening cycle with another 25 basis point increase. This increase is likely to occur during the central bank's policy committee meeting next week, following reports of lower-than-expected inflation and retail sales in June, which indicate a slowdown in the economy due to higher rates.
GOLD
SELL 1970 - 1972💯💯 ✅ TP1: 1965
✅ TP2: 1960
✅ TP3: 1955
🛑 SL: 1980
