Gold prices edged up on Tuesday, snapping a sharp sell-off amid lingering doubts over the economic impact of the new Delta COVID-19 variant, although a rally in the US dollar and bond yields continues to grip the market.
Quoted from CNBC, Wednesday (11/8/2021), the price of gold in the spot market rose 0.1 percent to USD 1,730.93 per ounce at 1:37 pm. EDT. While the price of US gold futures closed up 0.3 percent at USD 1,731.70.
The precious metal fell as much as 4.4 percent on Monday, as expectations the US Federal Reserve could start easing its economic support sooner than previously anticipated were reinforced by Friday’s strong US jobs report.
Although the metal has recovered somewhat from Monday’s lows, it remains pressured by the strengthening US dollar and 10-year Treasury yields on the back of the Fed’s tapering bets.
“Gold prices are going to be under pressure in the next few months,” said Bart Melek, head of commodity strategy at TD Securities, noting that continued gains in real yields along with expectations of the Fed’s tapering will weigh on gold. Higher returns on Treasury bonds increase the opportunity cost of holding gold, which pays no interest.
“Market expectations are that economic data will continue to recover in a very strong clip reminiscent of employment data, but Delta variant concerns could certainly prevent the Fed from wanting to ease sooner rather than later,” Melek added.
Delta Variant Covid-19 Cases
Cases of the Delta variant of the corona virus in several Asian countries and the United States continue to soar, threatening the economic outlook
In other agen judi togel online terpercaya precious metals, platinum rose 1.8 percent to $997.84 an ounce and palladium rose 1.9 percent to $2,650.25.
“Platinum and palladium are driven in large part by their supply and demand dynamics,” said Suki Cooper, analyst at Standard Chartered.
“While we expect the third quarter to present the least stringent fundamentals, the platinum family of palladium metals is more vulnerable to downside risks in the near term,” he concluded.