Bengaluru — Gold prices languished near a five-week low on Friday, set for a decline of more than 1% this week, weighed down by a strong dollar, high US Treasury yields and easing geo-political concerns. Spot gold was steady at $1,316.34 per ounce at 7am GMT, not far from a low of $1,315.06 an ounce hit in the previous session, its weakest since March 21. US gold futures were down 0.1% at $1,317.20 per ounce. "The strength of the US dollar — combined with the weakness of the eurozone currency, after (ECB chief) Mario Draghi speech — is pushing down the yellow metal. The recovery of the greenback is stopping any gold bullish movement," said Activtrades chief analyst Carlo Alberto De Casa. The dollar hit a fresh three-and-a-half-month high against a basket of currencies on higher US yields, while the euro was hampered by a dovish tone from the ECB. On Wednesday, the benchmark 10-year Treasury yield reached its highest since January 2014, at 3.035%. A rise in US bond yields pressures g...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.