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Original Title: For the First Time This Year! Not Afraid of Rising US Bond Yields Gold priceThis week, two consecutive rises, analysts: Gold prices will bottom out in the coming weeks
Financial news agency FX168 (North America) reported on Friday (March 19), against the backdrop of rising US Treasury yields, equity market volatility supported demand for gold as a safe haven Sure, and inflation concerns persisted, gold prices almost traded in Pingpan, Powertron has risen for two consecutive weeks for the first time since the beginning of this year.
In the US market, spot gold rose slightly, trading at $ 1,740 an ounce. The price of gold rose more than 0.5% this week.
(30 Minute Gold Spot Chart, Source: FX168)
Gold prices stabilized after falling for two consecutive months after inflation concerns pushed up Treasury yields. As investors have shifted from safe-haven assets to riskier assets, gold has fallen about 8% this year, but gold’s role as a hedge against inflation has provided some support to gold prices.
Deutsche Bank said nervous stock market investors are providing additional support. “The tug of war between rising government bond yields (which put pressure on gold) and concerns about the stock market (which tend to provide support) continues.” Commerzbank analyst Eugen Weinberg said: “Currently the price of gold is expected to be in the future. It bottomed out in a few weeks.”
“The rise in bond yields and the rise in the US dollar from recent lows have had a negative impact on gold prices,” said David Meger, head of metals trading at High Ridge Futures.
“But on the other hand, the expected growth prospects and the continued relatively low interest rate environment raise some concerns about inflation, which is good for gold.”
Gold is generally used to hedge against rising inflation, but the recent surge in US Treasury yields has put pressure on this non-performing product.
At the same time, the US dollar index rose 0.3%, making gold more expensive for holders of other currencies.
Earlier this week, the Fed reiterated that it will keep an interest rate target close to zero and said it expects economic growth and inflation to accelerate this year.
Joseph Stefans, MKS Chief Operating Officer, said: “This year’s surge in US Treasury yields has really put pressure on this type of gold.”
“On the other hand, we have seen a recovery in physical demand from India and Asia, especially in recent weeks. This will continue to support the gold market, especially as gold prices fall further.”
In other markets, palladium fell 2.5% to $ 2,615.89 an ounce, but this autocatalytic metal is expected to post a weekly rise of nearly 11%, the largest increase since early November.
Previously, Norilsk Nickel Company lowered its 2021 production target after the Arctic mine suffered from flooding, leading the market to predict that the capacity gap would exceed expectations. According to people familiar with the matter, the company may seek to use the central bank inventory to meet its obligations.
The price of platinum fell 3.1% to US $ 1,170.09 an ounce, the lowest level in a week, the price of silver fell 0.2% to US $ 26 an ounce.
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