Gold price drops to near 2-week low as dollar rises

Gold prices fell on Wednesday to their lowest in nearly two weeks as the dollar firmed and U.S. Treasury yields rose, while platinum eased further after scaling a more than six-year high in the previous session.


Spot gold was down 0.2% to $1,791.36 per ounce by 0118 GMT, after hitting its lowest since Feb. 4 at $1,785.89 in early trade.

U.S. gold futures slipped 0.6% to $1,788.40. Silver shed 0.1% to $27.20.

Benchmark U.S. Treasury yields gained more than 1.3% to their highest since February 2020. Higher bond yields increase the opportunity cost of holding non-interest bearing gold.

The dollar rebounded from a three-week low, making gold less expensive.

Global shares were mixed, as investors juggle the prospects for an economic comeback and additional stimulus with continued pandemic concerns.

Moderna Inc said the release of some of its COVID-19 vaccine doses to the U.S. government have lagged recently because of “short-term delays” in the final stages of production.

Investors look forward to the minutes of the Federal Reserve’s end-January monetary policy meeting on Wednesday.

Fiscal policy will remain an important economic prop in the United States until the pandemic subsides, Kansas City Federal Reserve President Esther George said.

Gold and silver mutual funds and ETFs witnessed the biggest outflows in three months in the week ended Feb. 10 as investors put their money into soaring equities and high-yielding bond markets.

Platinum eased 0.2% to $1,258.56 and palladium fell 0.5% to $2,372.45.

Platinum, which is used in automobile catalytic converters to limit exhaust emissions, has rallied about 18% this year on hopes of rising demand as a result of greener technologies.

0700 UK CPI YY Jan
1330 US Retail Sales MM Jan
1415 US Industrial Production Jan
1900 US Federal Open Market Committee will release the minutes from its January 26-27 meet

About Author

Related posts