- Write by:
-
Saturday, February 27, 2021 - 12:33:47 PM
-
614 Visit
-
Print
Mining News Pro - Gold continued its slump on Friday, falling to its lowest in eight months, as brighter economic outlook and inflation fears propped up US Treasury yields to levels last seen before the pandemic.
Spot gold fell 2.8% to $1,720.13 an ounce by 11:15 a.m. EST, on its way for a second straight weekly and monthly loss. US gold futures also declined 2.8%, down to $1,727.10 an ounce in New York.
“Rising inflation expectations as markets price in the reopening of developed market economies are pushing yields higher and pressuring gold,” OANDA senior market analyst Jeffrey Halley told Reuters.
Higher inflation normally boosts gold’s appeal as a safe haven asset, but it also lifts treasury yields, which in turn increase the opportunity cost of holding non-yielding bullion.
“The overall picture looks dire, gold is now in danger of a material move lower, if yields rise again,” Halley added.
“Gold is having a rough 2021 and the only thing that can right the ship is if central banks thwart the trajectory of bond yields,” said Edward Moya, also a senior market analyst at OANDA. “The Fed will have plenty of opportunities to stem surging Treasury yields, but for now it seems they can be a little more patient.”
Reflecting investor sentiment, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since May 2020. It is estimated that $1.5 billion in funds had been withdrawn from the ETF within the span of one week.
Short Link:
https://www.miningnews.ir/En/News/611609
Australian miner Lynas posted a slump in third-quarter sales revenue on Wednesday, missing analyst expectations on the ...
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 ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
Australia’s Fortescue on Wednesday logged a larger-than-expected decline in third-quarter iron ore shipments, following ...
The London Metal Exchange is imposing new rules surrounding the movement of metal in its warehousing network, taking aim ...
Canada has granted Airbus a waiver to allow it to use Russian titanium in its manufacturing after becoming the first ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
No comments have been posted yet ...