Gold Prices Plummet Amid Rising Yields and Stronger Dollar
Gold prices have fallen sharply this week as pressure from rising Treasury yields and a stronger U.S. dollar overwhelmed safe-haven demand. Despite a weak payrolls report, gold failed to sustain any forward momentum, and even dropped to its weekly low at $4,110.95 per ounce on Friday. The yellow metal kicked off the week trading at $4,277.90 per ounce and saw a brief burst of momentum to push to its weekly high at $4,280.56 per ounce on Monday before sellers took control.
The decline accelerated as higher oil prices kept inflation concerns alive, while rising long-term Treasury yields and a firmer dollar reduced demand for non-yielding assets. Gold attempted to stabilize after U.S. job openings showed signs of cooling and consumer confidence weakened, but the rebound remained limited as markets continued to price in the risk of another Federal Reserve rate hike.
The Kitco News Weekly Gold Survey showed that Wall Street is teetering on the brink of a bearish majority, while Main Street surrendered its bullish bias. Analysts are divided on gold's direction next week, with some expecting higher prices and others predicting further declines.