NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

PRECIOUS-Gold sinks to 9-month low as Fed remarks boost dollar, bond yields

Published 05/03/2021, 12:26 pm
Updated 05/03/2021, 12:30 pm
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
GLD
-
CME
-

March 5 (Reuters) - Gold slumped to a near nine-month low on Friday and headed for a third straight weekly decline after Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields.

FUNDAMENTALS

* Spot gold XAU= eased 0.2% to $1,693.79 per ounce by 0055 GMT, having earlier dropped to its lowest since June 8 at $1,688.96. It was down 2.3% for the week so far.

* U.S. gold futures GCv1 dropped 0.6% to $1,691.20.

* Powell on Thursday repeated his pledge to keep credit loose and said although the rise in yields was "notable", he did not consider it a "disorderly" move. The U.S. 10-year yield topped 1.5%, while the dollar surged to three-month highs. Higher yields increase the opportunity cost of holding bullion, which pays no interest. USD/ US/

* U.S. jobless claims rose last week after brutal winter storms in mid-February. The amount of gold held by exchange traded funds fell by 84.7 tonnes worth $4.6 billion in February, the World Gold Council (WGC) said. CME Group Inc CME.O decreased margins for COMEX 100 Gold Futures contracts by 9.1%. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD fell 0.4% on Thursday. GOL/ETF

* Silver XAG= rose 0.2% to $25.35 an ounce, but was down 5% for the week so far, its worst since late-November.

* Palladium XPD= climbed 0.2% to $2,343.55. Platinum XPT= shed 1.2% to $1,113.02.

DATA/EVENTS (GMT) 0700 Germany Industrial Orders MM

Jan 0745 France Reserve Assets Total

Feb 0830 UK

Halifax House Prices MM Feb 1330 US

Non-Farm Payrolls

Feb 1330 US

Unemployment Rate

Feb 1330 US

Average Earnings YY

Feb 1330 US

International Trade

Jan 2000 US

Federal Reserve issues Consumer Credit for January

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.