Gold prices fell, in trading today, Friday, affected by the rise in treasury bond yields due to the prospects of raising US interest rates and the strength of the dollar, but on a weekly basis, gold rose about 1.11% in one of the best weekly gains, also supported by the decline in the price of the dollar 0.57% on a weekly basis. .
The price of gold in spot trading fell by 0.3% at the level of $1,816.22 an ounce at the time of writing the report, and US gold futures fell by 0.3% to $1816.50.
The 10-year US Treasury bond yield rose to the level of 1.784%, up 0.07%, while the US dollar, which measures its performance against a basket of 6 major currencies, rose by 0.4% to reach the point 95.18 after reaching its lowest level since last November.
Gold is a hedge against rising inflation, but higher interest rates translate into a higher opportunity cost of holding non-yielding bullion.
Gold rose briefly after the release of data showing retail sales fell 1.9% in December, in light of a shortage of US goods due to bottlenecks in supply chains and a record rise in Corona injuries due to the Omicron mutator, before returning to decline after the rise in the dollar and Treasury yields supported by Statements by members of the US Federal Reserve.
Gold is an essential component of individual investment portfolios until the economy becomes clearer, said Philip Strebel, chief market strategist at Blue Line Futures in Chicago.
Strebel added that the weak data this week, in both cases, has a positive impact on gold, whether through intense selling in the markets that will raise the demand for gold as a safe haven, or that the US Federal Reserve will start managing expectations of raising the interest rate.
In a research note, TD Securities said that given the markets’ focus on monetary tightening from the Federal Reserve and the possibility of quantitative tightening, the lack of sources of support for the upside over the coming weeks could leave gold prices vulnerable to a fall.
Silver prices fell in spot trading, by 0.9% to $ 22.86 an ounce, and were on their way to achieving weekly gains by about 2.5%, and platinum fell by 0.2% to $ 967.32 and was scheduled to gain about 1.2% this week, while the price of palladium fell 0.3% to $ 1882.12 and is preparing for a weekly decline of about 2.7%.
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