Gold Price Eases with Usual Catalyst

Gold Price Eases with Usual Catalyst

Gold poses to enter the last regular trading day of the week in the red. This is following the rise in US Treasury yields.

For the first time in 14 months, 10-year contracts breached 1.75% after the Federal Reserve announced tolerance to inflation.

The 30-year contract followed the uptrend and hiked above 2.5% for the first time since August of 2019.

After the commencement of its two-day policy meeting started on Tuesday, the central bank said that it will keep rates near zero until 2023, as expected.

This announcement turned out to just be what government debt traders are waiting for.

On the other side of the spectrum, US jobless weekly claims for last week unexpectedly hiked to 770,000 after falling significantly in the past weeks.

This surpassed expectations of 700,000 new additions for the week. With this, the market is growing apprehensive about the state of things in the coming months.

This very anticipation prevented the bullion from going further down after gold futures shed off a conservative 0.04% to $1,731.85 per ounce.

The precious metal managed to keep its position steady above the $1,700 per ounce threshold. However, there is yet no catalyst indicating a bullish momentum in the near term.

In an update on other metals, palladium is behaving relatively steady after rising by more than 7% in the previous session. It trades at $2,682.68 a tonne in the latest charts.

The surge came after the biggest producer of the metal, Nornickel from Russia, cut supply estimates, sending prices flying.

In an update on the silver, prices fell at 0.6% while platinum was down by 0.7%.


Copper Price Fell

In an unlikely update, copper prices fell on Friday’s Asian session after the dollar made some muscle-flexing during the session.

For the record, a rising dollar index makes it more expensive for other currency holders to purchase the commodity.

A three-month contract in the London Metal Exchange shed off 1.7% to $8,898 per tonne, falling below the psychological resistance of $9,000.

The commodity settled well above this line with projections on strong demand for industrial metals amid recuperating major economies.

In Shanghai Futures Exchange, the most-traded May copper contracts eased 1.6% to $10,147 per tonne.

The nickel contract in the bourse also followed the downward pressure and fell 0.1% to 120,610 in local currency per tonne.

Analysts noted that should traders plan to enter the commodity markets, the best time to do so is now.