It is another lukewarm trading day for gold patrons.
The precious metal is nearing its lowest price since June of 2020 after tumbling below the psychological threshold of $1,700 per ounce.
On Thursday’s session, the yellow commodity is back at the $1,600 threshold, its lowest in nearly the last nine months.
Gold futures were trading at a 0.63% fall to $1,690 per ounce at the New York Comex. It is trailing to end the week with a 2.3% drop.
The bullion is currently suffering from the double whammy of a steadying US Dollar and the extended rise in US Treasury yields.
In the latest charts, the greenback gained 0.7% in the overnight session, with the USD index rising to its highest level since December 1 at 91.660.
Consequently, the Treasury yields regain ground after making a temporary halt during the early days of the week.
The government debt bond for a 10-year maturity date is posed to end the week with a 1.5% hike.
The rise in both the world’s reserve currency and yields is propelled by Federal Reserve Jerome Powell’s latest statement.
Consequently, Powell is keeping a taciturn stance on Treasury yields, saying that he does not consider the recent rise as a disorderly move.
With the downward consolidations in the near term, the spot gold price slashed more than $13 per ounce and is currently trading at $1,697.72.
The real-time prices bottomed to $1,690 per ounce at one point of the session.
Such is an indication that the yellow metal might rest in the hands of the bears for a longer period than expected.
The spot prices have been a strong directional indicator of the future performance of the commodity, as used by analysts.
Meanwhile, silver is also weathering a relatively strong pullback on Thursday’s session.
The industrial metal tumbled around $28 per ounce during the regular trading, eyeing the near-term support level of $26 per ounce.
On the other hand, forecasts remain on the bullish side and the resistance target is at $30 per ounce.
On the other hand, the surge this time around is supported by institutional movements such as high demand for the commodity amid the back-to-normal prospects.