Gold prices slip on strong Treasury yields, weak dollar
- 14 Apr 2021
Gulf Today Report
Gold prices dropped on Wednesday as Treasury yields remain firm and the dollar declines due to higher inflation.
Spot gold was flat $1,743.01 per ounce by 05:49 GMT while US gold futures fell 0.4% to $1,741.30 per ounce.
Margaret Yang, a strategist at DailyFx said "though the dollar is weaker this morning, but a slight uptick in US Treasury yields is keeping gold's upside movement muted."
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In the United States, consumer prices surged to the highest in 8 ½ years, setting off higher inflation and supporting bullion.
The US dollar fell to three-week lows, making gold cheaper for holders of other currencies, while a slight rise in Treasury yields increased the opportunity cost of holding the metal that pays no return.
For gold to appeal to new bullish-pattern traders and push prices higher, it must test the $1,760-mark, said Avatar Sandu, a senior commodities manager at Phillip Futures.
