Title: Gold Down over Rise in Bond Yields

Jun 08, 2022 11:06PM ET

By: AnalysisWatch

In Asia on Thursday morning, gold fell in value after a rise in US government bond yields ahead of the release of US employment and inflation data weighed on demand for gold.

At 10.58 a.m. ET, gold futures were down 0.08% to USD 1,855.00. The dollar, which normally moves inversely to gold, rose on Thursday morning.

The yield on the ten-year Treasury bond rose to 3.03%, which put a brake on gold prices.

On Wednesday, the Organization for Economic Co-operation and Development warned that the outlook for the global economy had become bleaker as a result of the war in Ukraine and cut its growth forecasts.

Meanwhile, the European Central Bank will take a policy decision on Thursday and announce that it will end its bond purchases.

Data on the US Consumer Price Index, the Chinese Consumer Price Index, and the Producer Price Index are due on Friday. Later in the day, Chinese trade data is due.

In the Asia-Pacific region, India's central bank raised interest rates to 4.90% on Wednesday, beating forecast of a rate hike to 4.80%.

Among the other precious metals, silver rose by 0.03%. Platinum fell by 0.08% and palladium by 0.97%.