- Write by:
-
Saturday, September 24, 2022 - 21:54:58
-
579 Visit
-
Print
Mining News Pro - Gold continued its recent struggles on Friday to set a new two-year low after a slew of central banks followed the US Federal Reserve in raising interest rates to cool inflation.
Spot gold fell 1.4% to $1,647.92 per ounce by 11:30 a.m. ET, on its way towards a second consecutive weekly loss. US gold futures were down 1.6% to $1,653.80 per ounce.
Gold’s decline comes on the back of a rallying US dollar, which touched a 20-year high, curbing demand for the greenback-priced metal. Benchmark 10-year yields also jumped to their highest since April 2010, further dampening demand for bullion.
“We’re seeing relentless dollar strength here and that’s going to keep gold vulnerable in the short term,” Edward Moya, senior analyst with OANDA, told Reuters.
“The economy is clearly heading towards a recession. The risks of a hard landing are elevated, and this has been just continuing to drive flows into the dollar, which has been bad news for gold.”
“This should see (gold) prices trading broadly sideways over the rest of the year,” Fitch Solutions added in a note to Reuters.
The precious metal joined the selloff in risky assets as investors opted for cash after UK’s economic plan reignited concerns that central banks’ aggressive interest-rate hikes to rein in rampant price increases may lead to a recession.
Outflows from gold-backed exchange-traded funds have continued, with holdings now close to the lowest this year, Bloomberg data shows. US business activity contracted in September for a third-straight month, though at a more moderate pace as a pickup in orders and a further softening of inflation allayed concerns of a more-pronounced pullback.
Weakness in bullion is “very likely to persist” due to “monetary tightening that makes gold costlier to hold,” said Gnanasekar Thiagarajan, director at Commtrendz Risk Management Services. “However, recession fears and any escalation in the Russia and Ukraine conflict could support prices.”
Short Link:
https://www.miningnews.ir/En/News/622206
Zimbabwe’s President Emmerson Mnangagwa has re-appointed Winston Chitando as the southern African nation’s mines ...
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
A new report by IDTechEx states that investing in e-haul trucks could result in major savings for miners due to the ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
Copper traded near $10,000 a ton, hitting a new two-year high on its way, as investors continue to pile in on a bet that ...
Adriatic Metals is taking over as the operator of the Rupice deposit development, which is part of the company’s Vares ...
No comments have been posted yet ...