Fun

Gold Slides on Higher US Treasury Yields, Dollar

News Feed - 2023-04-20 02:04:09

Gold Slides on Higher US Treasury Yields, Dollar


Prices of gold, and other precious metals, fell on Wednesday due to stronger U.S. yields and national currency. The decline comes on the backdrop of expectations of new interest rate increases next month amid persistent inflation in the United States and elsewhere. Gold and Silver Slip as Investors Bet on Another Rate Hike in May


Gold prices dropped more than 1% on April 19 on higher U.S. yields and a more expensive dollar, with a number of investors now convinced that the United States Federal Reserve is likely to postpone a pause in interest increases.


Spot gold was down 1.7% at $1,970.31 per ounce by 12:00 GMT, while U.S. gold futures were down 1.9% to $1,982.20, Reuters reported. Gold was trading below its 21-day moving average of around $1,990. At the same time, silver dropped 1.9% to $24.73 per ounce while platinum was down 1.5% to $1,066.42.


The decrease in the prices of precious metals was preceded by the rising of benchmark U.S. Treasury yields to an almost one-month high, which increased the value of the U.S. dollar and made gold less affordable for buyers paying with other currencies.


According to Ole Hansen, head of commodity strategy at Saxo Bank, the correction was due to the markets readjusting their expectations of the Fed’s rate-hike path. He predicted that gold will rally again once interest rates peak.


On Tuesday, St. Louis Federal Reserve Bank President James Bullard said that America’s central bank should continue to raise rates amid persistent inflation. Other Fed representatives are also expected to comment ahead of the monetary authority’s decision in May.


Meanwhile, despite the eurozone inflation easing in March, core indicators remain high and members of the European Central Bank’s Governing Council stated that Europeans are likely to see another interest rate increase after their meeting in early May. With the U.K. experiencing the highest inflation in Western Europe, the same can be expected from Bank of England as well. Tags in this story Bank of England, Central Bank, Dollar, ECB, Eurozone, Expectations, Fed, Federal Reserve, Futures, gold, Hike, hikes, increase, inflation, interest rate, interest rates, Precious Metals, Price, Prices, rate, rates, silver, Treasury Yields, uk, US, US Dollar


What are your predictions about gold prices in the near future? Share them in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Stop the Presses: Criticism Against the New York Times Mounts as Newspaper Is Accused of Killing 59 Million Trees Annually NEWS | 2 hours ago Hong Kong Judge Rules Crypto Assets as ‘Property,’ Following Similar Rulings Worldwide NEWS | 4 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSpace and Time and Microsoft Make Blockchain Data Accessible on Azure Marketplace Next articleHong Kong Judge Rules Crypto Assets as ‘Property,’ Following Similar Rulings Worldwide Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms

News Feed

Altcoin Transaction King? TRON Hits 42% Share As USDT, DeFi Explode
Este artículo también está disponible en español. Tron (TRX) is demonstrating its status as a dominant force in the realm of altcoin transactions. The network has establi
A Tale Of 3 Mayors And Bitcoin’s Climb From $754 To $107,000
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Alexander Vinnik Serves Prison Term in France but No Freedom in Sight
Alexander Vinnik Serves Prison Term in France but No Freedom in Sight Having served his five-year prison sentence in France, Russian IT and crypto specialist Alexander Vinnik is no
Ether price may dip after ETF 'novelty' wears off due to surging supply
Ciaran Lyons3 hours agoEther price may dip after ETF "novelty" wears off due to surging supplyInto The Cryptoverse founder Benjamin Cowen says if supply keeps increasing it will "revert" to similar levels befor
Amaka Nwaokocha32 minutes agoBinance conducts 11th LUNC burn, 2.65 billion tokens destroyedThe Terra Classic burn mechanism automatically burns tokens whenever a transaction occurs on the network.334 Total views1 Total s
USDC overtakes USDT: Compliance is key to stablecoin dominance
Daniel Ramirez-Escudero11 hours agoUSDC overtakes USDT: Compliance is key to stablecoin dominanceTether’s USDT hegemony in the stablecoin market may shift as institutional investors chip into the crypto market.4765 Tot
John McAfee Is Alive, Hiding Out in Texas, Ex-Girlfriend Claims in Netflix Documentary
John McAfee Is Alive, Hiding Out in Texas, Ex-Girlfriend Claims in Netflix Documentary John McAfee’s ex-girlfriend has made a claim that the former anti-virus tycoon is aliv
Puerto Rico Defines Act 60 Tax Exemptions for Blockchain Companies
Puerto Rico Defines Act 60 Tax Exemptions for Blockchain Companies The Economic and Commerce Development Department of Puerto Rico (DDEC) has issued a document in which it defines
Emergent Games Launches Genesis 0 Cryotag NFTs for MMORPG Resurgence Today
Emergent Games Launches Genesis 0 Cryotag NFTs for MMORPG Resurgence Today press release PRESS RELEASE.Today, Web3 development studio Emergent Games has launched a range of 1,000 li
Bitcoin derivatives metrics suggest $70K is here to stay
Marcel Pechman3 hours agoBitcoin derivatives metrics suggest $70K is here to stayReduced leverage use in Bitcoin futures greatly reduces the odds of cascading liquidations in the case of a BTC price pullback.1438 Total
Next Crypto Bull Run Will Start From the East, Says Gemini Co-Founder
Next Crypto Bull Run Will Start From the East, Says Gemini Co-Founder Gemini’s co-founder believes that the next crypto bull run will come from the East. “It will be a
Blockchain Entrepreneur to Regulators: ‘Crypto Community a Useful Ally’
Blockchain Entrepreneur to Regulators: "Crypto Community a Useful Ally" To many people, the year 2020 will probably go down in history as one of the most consequ