Gold prices retreated on Wednesday as the U.S. dollar advanced to fresh 20-year highs, following a brief reprieve in gold’s slide a day earlier
expiring in December were down $1, or 0.1%, to $1,635 per ounce on Comex.
expiring in December were down 20 cents, or 1.1%, at $18.15 per ounce.
expiring in December were up 1 cent, or 0.2%, at $3.29 per pound.
Precious metals analysts largely blamed rising bond yields and the rampaging U.S. dollar for diminishing gold’s allure as a haven asset. As both yields and the dollar continue to climb, the next support level for the yellow metal is likely around $1,600 per ounce, a level it hasn’t seen since February 2020.
“Gold is falling again as yields rise and the dollar rallies once more on Wednesday. The yellow metal has been hammered by the repricing of interest rate expectations recently and is now threatening to break below $1,620, with support next appearing around $1,600,” said Craig Erlam, senior market analyst at Oanda.
The ICE U.S. Dollar Index
a gauge of the dollar’s strength against a basket of rivals, was up 0.5% to 114.66.