Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

PRECIOUS-Gold under pressure as U.S. yields, dollar firm

Published 2021-03-10, 05:24 a/m
Updated 2021-03-10, 07:30 a/m
© Reuters.

© Reuters.

* European Central Bank policy meeting due on Thursday

* More platinum deficits loom after record 2020 undersupply - WPIC

* Platinum prices likely to reach $1,300/oz over 12 months - UBS (Updates prices)

By Shreyansi Singh

March 10 (Reuters) - Gold eased on Wednesday after registering its biggest jump in two months in the last session, as higher U.S. Treasury yields and a stronger dollar remained a stumbling block for bullion.

Spot gold XAU= was down 0.2% at $1,711.21 per ounce by 1207 GMT after rising more than 2% on Tuesday. U.S. gold futures GCv1 fell 0.5% to $1,709.20.

U.S. yields regained momentum on Wednesday, raising the opportunity cost of holding bullion, while the dollar also gained. USD/ US/

"Gold prices are likely to remain under pressure, while concerns about inflation are front of mind for the market," said CMC Markets UK's chief market analyst, Michael Hewson, adding a stronger dollar could be a further drag on bullion prices over the next few days.

The U.S. House of Representatives cleared the way for the $1.9 trillion U.S. COVID-19 relief bill to be considered on Wednesday, when it is expected to be approved. gold is widely considered a hedge against higher inflation anticipated to be fuelled by stimulus measures, higher yields have challenged that status this year.

Policymakers were divided on a large-scale market intervention to counter a rise in yields ahead of a European Central Bank meeting on Thursday. U.S. Federal Reserve "would have to flood markets even more, blue in the balance sheet further to keep yields at a low level, but that would here in the current environment only fuel more inflation expectations," said Quantitative Commodity Research analyst Peter Fertig.

Silver XAG= fell 0.9% to $25.67 an ounce. Palladium XPD= lost 0.5% to $2,285.92, while platinum XPT= was down 0.4% at $1,163.98.

More platinum deficits loom this year after a record undersupply of almost a million ounces in 2020, the World Platinum Investment Council said. at Swiss bank UBS forecast platinum prices reaching $1,300 over the next 12 months, driven by high investment demand and strained supply.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.