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Gold prices are falling with the rise of the dollar and the rise in US Treasury yields

  • 28 September, 2021
  • 2:17 pm EEST

Gold prices fell on Tuesday in a narrow range, affected by the rise of the dollar and the rise in US Treasury bond yields, and the repercussions of the debt crisis of the Chinese real estate developer Evergrande limited the losses of the precious metal.

This comes as investors await more signals from Federal Reserve officials regarding the shift in US monetary policy.

 

Gold prices today

By 06:30 AM GMT, gold futures for December delivery were down 0.51 at $1,743.10 an ounce.

The price for spot delivery of the yellow metal also decreased by 0.42%, recording $1742.74 an ounce.

This comes in conjunction with the dollar index, which is moving in reverse with gold prices, by 0.1%, which makes the precious metal more expensive for holders of other currencies.

The US Treasury yields for 10 years rose yesterday evening to their highest level in 3 months.

Federal Reserve officials on Monday linked the reduction in the Fed’s monthly bond purchases to continued job growth, as the September employment report became a potential catalyst for a “gradual decline” of US Fed bonds.

Investors are looking forward to testimony from US Federal Reserve Chairman Jerome Powell in Congress later today, after he said his bank will act against uncontrolled inflation if necessary.

 

Gold deals

“Gold appears content to hover around $1,740-$1,760 at the moment, as Asian buyers add to buying on dips and growth concerns in Evergrande and China encourage regional buyers to add more gold,” said Jeffrey Haley, chief market analyst for Asia. as a safe haven,” Reuters reported.

Investors remain concerned about the crisis of the Chinese company, which has 30 days to make the payment before it defaults, while its wealth management unit is now being investigated.

It comes as China’s central bank pledged on Monday to protect consumers exposed to the housing market and inject more liquidity into the banking system, as government investigations began into the wealth management unit of troubled property developer Evergrande.

 

Metal prices

Silver futures prices for December delivery decreased by -0.88%, recording $22.50 an ounce.

The price of platinum in spot transactions also fell, by 0.01%, to $983.57 an ounce, and the spot price of palladium fell, by 0.31%, to $162.21 an ounce.

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