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Title: Gold hits over one-week low as firm bond yields, dollar weigh


Apr 20, 2022 01:16AM ET


By: AnalysisWatch


Gold prices fell to their lowest level in more than a week on Wednesday as a higher U.S. dollar and government bond yields continued to weigh on gold demand.


At 4:30 a.m. CET, spot gold prices fell 0.3% to $1,944.06 an ounce, after hitting the lowest level since April 11. U.S. gold futures contracts fell 0.7% to $1,944.80.


Prices fell as much as 1.8% on Tuesday as a stronger dollar and rising Treasury yields overshadowed safe-haven metal inflows.


Gold prices fell to their lowest level in more than a week on Wednesday as a higher U.S. dollar and government bond yields continued to weigh on gold demand.


The dollar held near recent highs, making gold less attractive to holders of other currencies priced against the greenback.


China left its benchmark corporate and household lending rates unchanged in April, contrary to expectations, as Beijing is more cautious about introducing easing measures to support its slowing economy.


U.S. Treasury yields continued to rise to multi-year highs as investors braced for aggressive rate hikes by the Federal Reserve.


Gold is very sensitive to rising U.S. interest rates and higher yields, which increase the opportunity cost of holding metals without yields.


While the recent gains show that Ukraine remains in focus, the overnight move is a rebalancing of fast money flows and not a structural change in the outlook for gold, Halley said, adding that a sustained rise in U.S. 10-year yields above 3.0% could change that outlook.


On Monday, gold prices came within touching distance of the key $2,000-an-ounce level as the deepening Ukraine crisis and rising inflation concerns drove investors to the safety of gold.


Spot silver was down 0.4% to $25.05 per ounce, platinum was down 1.4% to $976.64 per ounce, and palladium was up 0.9% to $2,394.05 per ounce.

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