- Write by:
-
Tuesday, November 23, 2021 - 13:05:08
-
515 Visit
-
Print
Mining News Pro - Gold erased more than two weeks’ worth of gains on Monday, pressured by a firmer dollar and expectations that the US Federal Reserve may accelerate the pace of policy tightening to combat inflation.
Spot gold was down 1.6% to $1,816.91/oz by noon ET, after falling to its lowest since Nov. 5 at $1,812.09/oz earlier in the session. US gold futures declined 1.8% to $1,818.10/oz in New York.
Bullion’s latest pullback comes after comments from Fed Vice-Chair Richard Clarida last week suggested that the central bank would table the idea of tapering its asset purchases in the upcoming December meeting.
“In the short- to medium-term, gold’s fundamentals look good because real (inflation-adjusted) yields are so negative, but eventually we’ll get tighter monetary policy and gold will trend lower in the bigger picture,” IG Markets analyst Kyle Rodda said in a Reuters report, adding:
“There’s also a growing sense that the United States and China are going to intervene to bring oil prices lower, one of the biggest drivers of inflation expectations, and this has weighed on gold’s momentum around its role as an inflation hedge.”
Higher interest rates generally translate into an increased opportunity cost of holding the non-yielding gold. Further pressuring bullion was a stronger dollar index, which made the metal more expensive for holders of other currencies.
“But with inflationary pressures reflecting only in short-dated (US bond) rates, only more officials jumping on to a faster-taper narrative, or a sudden move higher in longer-term US yields is likely to derail gold’s rally,” Jeffrey Halley, senior market analyst at OANDA, said in a note.
However, Halley also said a move towards $2,000 in gold before the December Fed meeting can’t be ruled out.
Short Link:
https://www.miningnews.ir/En/News/617126
A Russian arbitration court ruled on Monday that four units of Swiss commodities trader Glencore will pay more than 11.4 ...
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
The world’s coal-fired power capacity grew 2% last year, its highest annual increase since 2016, driven by new builds in ...
Peabody Energy Corp. shares sunk to the lowest in seven months after the biggest US coal miner warned that first-quarter ...
Newmont confirmed on Wednesday that two members of its workforce died this week at the Cerro Negro mine located in the ...
No comments have been posted yet ...