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 set for first weekly fall in three on firmer dollar, yields

Published 2021-03-26, 06:31 a/m
Updated 2021-03-26, 09:18 a/m
© Reuters

© Reuters

(Recasts, adds comment, chart, updates prices)

* Dollar holds close to over four-month peak

* SPDR Gold ETF (NYSE:GLD) holdings down over 140 tonnes so far this year

* Gold trapped in range bound trade - analyst

By Brijesh Patel

March 26 (Reuters) - Gold prices eased on Friday en route for their first weekly decline in three as a stronger dollar and rising U.S. Treasury yields offset support from concerns over surging coronavirus cases in Europe.

Spot gold XAU= was down 0.1% at $1,724.65 per ounce by 1225 GMT. Bullion is down 1% so far this week. U.S. gold futures GCv1 were down 0.1% at $1,724 per ounce.

"A strengthening dollar, rising Treasury yields and outflows on the physically gold-backed exchange-traded fund's are definitely the headwinds right now," said Xiao Fu, head of commodities markets strategy at Bank of China International.

"At the same time, we have rising geopolitical risks and a third wave of the pandemic supporting gold prices as well," she added.

The dollar index .DXY firmed near four-month peak against its rivals. Recent better-than-expected economic readings out of the United States lifted prospects of a strong U.S. economic recovery and strengthened the U.S. currency. USD/ U.S. Treasury yields edged towards a more than one-year high hit last week, increasing the opportunity cost of holding non-interest bearing gold. US/

"A stronger dollar and higher yields continue to spur further liquidation primarily from the ETF community," said Joseph Stefans, Head of Trading at MKS. think gold is trapped in a bit of a range here and I can see it trading sideways over the next week or so."

The biggest gold-backed exchange traded fund, SPDR Gold Trust HLDSPDRGT=XAU has seen outflows of more than 140 tonnes so far this year.

Meanwhile, sentiment in wider financial markets, for most part of the week, remained subdued as worries about new lockdowns and a slow pace of vaccination in the euro zone weighed on risk appetite among investors. MKTS/GLOB silver XAG= inched 0.1% lower to $24.99, holding above an over two-month low of $24.39 per ounce hit on Thursday.

Palladium XPD= gained 0.9% to $2,633.07 and platinum XPT= rose 0.5% to $1,153.12.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ SPDR Gold ETF vs spot gold

https://tmsnrt.rs/3fkrUVI

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.