April 28, 2022 at 0:08 a.m.
New York Gold Contract It closed down to its lowest level in two months on Wednesday (27 Apr) due to a rise in US Treasury yields. and the appreciation of the dollar pressures the market. Gold markets have also been negatively affected by the Fed. It is likely to raise interest rates by 0.5% next month.
COMEX Market Gold Contract (Commodity Exchange) Delivered in June It was down $15.4, or 0.81%, at $1,888.7/ounce. This is the lowest closing level since Feb 25, 2022.
- Silver metal contract for delivery in May It was down 8.5 cents, or 0.36%, at $23.505 an ounce.
- Platinum contract delivered in July It was down $1.7, or 0.19%, at $910.4/ounce.
- Palladium contract delivered in June It was up $16.60 or 0.76% to close at $2,195.10 an ounce.
The 10-year US Treasury yield rose to 2.795%, while the dollar index rose. The dollar’s movement index against six major currencies in a basket of currencies rose 0.63% to 102.9540 overnight.
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies Rising bond yields will increase the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
gold contract It has also been pressured by concerns that the Fed may accelerate interest rate hikes. After Fed Chairman Jerome Powell said He encouraged the Fed to act faster to combat inflation. It said there was a chance the Fed would raise interest rates by 0.50% at its May meeting, which will be the first time the Fed has raised interest rates by 0.50% since 2000.
Markets are also worried that the Fed will raise interest rates more strongly after May. could be raised by 0.75% to curb inflation
