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On the world market, gold prices remained gloomy in this morning session after falling more than 3% in the previous session due to the strength of the USD and higher yields on US government bonds.
The world price of gold fell to the lowest level in 8 months.
In the morning session on February 27, the spot price of gold was unchanged at $ 1,735.6 / ounce at 6:40 am (Vietnam time), according to kitco. The price of gold delivered in April decreased 2.42% to $ 1,732.45 / ounce.
Gold prices fell 3% in trading on Friday (February 26) to an 8-month low and marked the worst month since November 2016. The reason is that a strong dollar and a rise in bond yields The US government reduces the attractiveness of an unprofitable precious metal.
Gold prices fell 6.4% in February, according to Reuters.
Yields on US 10-year bonds are near the highest level in more than 1 year, while the USD index is also increasing.
From the beginning of the year until now, US bond yields have risen by more than 50 basis points, thus weakening the image of gold’s anti-inflation assets by increasing the opportunity cost of holding gold.
According to OANDA analyst Craig Erlam, gold is back in trouble and the metal’s short-term outlook is not favorable.
“Rising bond yields and now a stronger dollar are putting pressure on gold,” Erlam said.
Other metals also fell on the boost from gold, with silver prices falling 3.9% to $ 26.34 / ounce. Silver prices marked the first month of decline in 3 months in February and were down 2.5% on the month.
Palladium prices fell 3.3% to $ 2,321.15 an ounce, while platinum prices fell 2.8% to $ 1,182.34. However, both metals used in automotive catalysts posted increases in February.
Meanwhile, data for January showed that US consumer spending increased the most in seven months.
While this number reduces the demand for safe-haven assets, the trillion-worth stimulus package is expected to pass and interest rates are expected to remain low, which should support the price of gold and silver, said Bob Haberkorn, RJO’s senior market strategist. Futures.
