Commodities
Gold Price Consolidation Likely Temporary Amid Rising Yields and Dollar Strength
Gold prices have experienced a relatively quiet week of trading, but experts warn that this pause is likely to be temporary. According to the World Gold Council, rising US real and bond yields, as well as a strengthening US dollar, are weighing on bullion.
The yellow metal has been consolidating above the USD 3,943/oz June low, with the London Bullion Market Association (LBMA) gold price Post-Meridiem (PM) surging 1.8 per cent w/w to USD 4,067/oz last week.
The World Gold Council notes that from a technical perspective, the bounce may just be a temporary breather in gold's downtrend that has been in place since January, with the next key technical support at US$3,857-3,887/oz.