Gold Fails to Break Through US$4,200
Gold and silver prices weakened at the end of Tuesday's North American trading session. Pressure came from rising US Treasury yields, a strengthening dollar, and renewed tensions in the Strait of Hormuz.
Spot gold traded at around US$4,127.10 per troy ounce, down slightly by 0.04%. Meanwhile, spot silver moved around US$60.859 per ounce, relatively unchanged. On the Comex market, the leading gold contract closed down 0.24% at US$4,145.30, while silver fell 1.60% to US$60.931.
The weakening of gold pushed prices back below the US$4,200 level, which had previously been the upper limit after the rally following the US jobs data. The weaker payrolls data did provide some support for gold, as the market believed the Fed would not need to be too aggressive in raising interest rates.
However, this support was tempered by the strengthening of US bond yields and the dollar. When yields rise, assets like gold and silver become less attractive because they offer no yield. A stronger dollar also makes precious metals more expensive for buyers using other currencies.
Silver also lost momentum after failing to hold above the US$62.00 level. This condition ended its four-day upward trend. Overall, gold and silver are still in a consolidation phase. To continue rising stronger, the market needs a weakening dollar or a decline in US yields. (arl)
Source: Newsmaker.id
