Gold Struggles to Move Past $1,800

Gold is set to end the trading week with a lukewarm performance. It struggles to break the $1,800 per ounce ceiling.

The precious metal is undermined by several factors, particularly by the firming US dollar and a rally in value assets.

The US bond yields surged to the upside again, consolidating a downward pressure for commodities.

In the latest charts, the yellow metal’s futures contract at the New York Comex for April delivery traded at $1,775.40 per ounce. 

This came after a 1.3% fall that slashed $22.50 off the bullion’s previous settlement. The contract tumbled to $1,764.25 at one point of the session which was near an eight-month low.

Moreover, the real-time chart is not performing any better as spot gold price slashed $33.19 after a 1.9% drop to $1,771.61 per ounce.

The movement of the charts is fast-paced. Some experts, however, are convinced that the metal might be in for its second consecutive monthly and weekly decline.

A senior market strategist noted that the higher global bond yields accelerate, the more dangerous it is for bullion.

Currently, it struggles to maintain the good performance incurred during the height of the pandemic when traders see the asset as the best bet against inflation prospects.

Meanwhile, experts noted that the only way that could prevent further slides in the nearer term is when central banks apply cold water to the trajectory of bond yields.

It is not only the precious metals that are struggling from the recent trend but also the major US bourses.

The 1.5% surge in the US 10-year Treasury note sent stocks succumbing down on their knees. Microsoft ended up slashing 2% at the stock market close.

Silver Price Update

The Dow Jones Industrial Average fell by more than 5%. The Nasdaq slashed 3.5% which is considered as the biggest sell-off so far since October last year.

The rising inflation expectations are ironically turning out to be bearish for the bullion, along with the reopening of some of the world’s biggest economies.

During the height of the health crisis, gold became the favorite among traders. 

This is due to its characteristic as a non-yielding asset that makes it a favorable bet. Especially in times of economic shock and skyrocketing consumer prices.

In an update on silver prices, the metal continues to struggle to break past the $28 per ounce level with no institutional support at bay.

The metal’s traders have experienced a long list of back and forth movements during Thursday’s session. They were looking at $26 as the support level.