Gold holds near 9-month low as yields, dollar gain further

Gold fell to its lowest in 9 months on Friday after better-than-expected US employment knowledge bolstered the and US Treasury yields, placing bullion on track for its third straight weekly decline.

Spot gold was down 0.1% at $1,695.22 by 11:50 a.m. ET (1650 GMT), after falling to its lowest since June 8 at $1,686.40 within the session. It has fallen almost 2% this week.

US gold futures slipped 0.4% to $1,693.10.

“This optimism in regards to the economy moving forward continues to drive bond yields higher and that certainly has been taking the wind out of the sails of many commodity markets, including gold,” mentioned David Meger, director of metals buying and selling at High Ridge Futures.

Data confirmed US jobs elevated greater than anticipated in February, elevating hopes round a fast financial rebound pushed by huge fiscal stimulus and vaccination drives.

The robust financial knowledge lifted benchmark 10-year Treasury yields to their highest since February 2020, whereas the dollar

additionally jumped.

US Federal Reserve Chair Jerome Powell on Thursday repeated his pledge to maintain credit score free and flowing till Americans are again at work.

However, his feedback dissatisfied gold traders who anticipated him to behave on the current surge within the US 10-year Treasury yield, which has despatched bullion under $1,700 per ounce.

“The gold market is giving back the pandemic gains. The drop below $1,700/oz leaves the market looking fragile,” HSBC analysts mentioned in a be aware.

“Powell’s comments – while not new – have extinguished for the moment any possibility that the Fed will act on rising yields further out the curve. Further yield gains could throw gold and the other precious metals lower.”

Silver dropped 1.6% to $24.90 an oz and was down almost 6% on the week, its greatest weekly share fall since late November.

Palladium was up 0.2% at $2,344.64, whereas platinum fell 1% to $1,114.72.