Ebene Magazine – Gold in $1,600 Territory As U.S. Bond Yields, Dollar Spike Again en

0
19

Investing.com – The resolve of the gold bull is facing an all-new test with prices of the yellow metal breaking below $1,700 an ounce for a second day in a row after remarks on the U.S. economy by Federal Reserve Chairman Jay Powell sent bond yields and the dollar soaring.

Gold futures on New Yorkâ????s Comex snapped below $1,700 on Wednesday, the first time since April last year, and were back below those levels after Thursdayâ????s official session on the exchange. The spot price of gold, which reflects real-time trades in bullion, hit $1,600 territory the first time since June on Thursday.

Gold for April delivery

on New Yorkâ????s Comex settled down $15.11, or 0.9%, at $1,700.70 an ounce. By 2:10 PM ET (19:10 GMT), some 40 minutes after the official session, it traded at 1,695.10, after hitting a low of $1,687.75.

Spot gold

was down $13.25, or 0.8%, to $1,697.89, after a bottom $1,690.72. Hedge funds and other money managers sometimes rely more on the spot price than futures for determining direction in gold.

The yield on the benchmark

U.S. 10-year bond

rose to nearly 1.55% after Powell admitted at an event hosted by The Wall Street Journal that a recovering economy could « create some upward pressure on prices,â???? before adding that any rise in inflation would be « transitory ».

Powell’s comments pulled down a stock market that in recent days had seen investors questioning the valuations of high-flying tech stocks such Apple (NASDAQ:

AAPL

), Microsoft (NASDAQ:

MSFT

) and Amazon (NASDAQ:

AMZN

).

Gold, already in meltdown mode for some time, got swept into the stocks rout despite its so-called inflation hedge and the imminent passage expected for President Joe Bidenâ????s $1.9 trillion Covid-19 relief bill.

The dollar, the alternative trade to gold, soared with the

Dollar Index

, which pits the greenback against six major currencies, hitting a four-month high at 91.68.

Since Feb. 22, the benchmark gold futures has lost $115, or nearly 6.5%. In Tuesdayâ????s trade, its only positive session in the past seven, it rose just around $10, or 0.6%. For the year, gold is down almost 10%.

Traders now await the U.S. Labor Departmentâ????s release of the

February jobs report

. The marketâ????s consensus is for a growth of 180,000 jobs last month, above Januaryâ????s 49,000 expansion. Much higher growth could again weigh on the yellow metal.

â????Gold bulls are getting dizzy as they look over a cliff of price action that could see another $100 of weakness,â???? said Ed Moya, analyst at New Yorkâ????s OANDA. â????If the bond market continues to ignore the Fed, gold could be in for a few rough weeks.â????

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or
Upload from your computer
Supported formats: *.jpg, *.png, *.gif up to 5mb

Risk Disclosure: Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk and is not suitable for all investors. Trading or investing in cryptocurrencies carries with its potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex and cryptocurrency prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore, Fusion Media doesnâ????t bear any responsibility for any trading losses you might incur as a result of using this data. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers

Related title:
Jerome Powell says 'disorderly' market conditions would concern him
Gold in $1600 Territory As US Bond Yields, Dollar Spike Again
S&P 500, Nasdaq weighed down by tech stocks; Powell in focus
Fed Chair Powell Offered a Patient Message. Markets Quivered Anyway.
Markets fall after Fed Chair Powell urges patience
S&P 500 rises in choppy trading ahead of Powell speech
Stock Selloff Accelerates After Powell's Comments
Powell Sends Dovish Message That Leaves Bond Market Disappointed
Nasdaq wipes out gains for 2021 as US Federal Reserve chairman Jerome Powell fails to calm markets over inflation …
Dow plunges 467 points as Powell comments trigger fresh tech sell-off

en

Ref: https://in.investing.com

QU’EN PENSEZ-VOUS?

[comment]

Laisser un commentaire, votre avis compte!

[gs-fb-comments]

Laisser un commentaire, votre avis compte!

Laisser un commentaire, votre avis compte!