Gold prices fall, its second monthly decline - GulfToday

Gold prices fall, its second monthly decline

Gold bars

Picture used for illustrative purpose. File

Gulf Today Report 

Gold prices dropped on Friday on encouraging economic outlook and inflation fears supporting US Treasury yields.

Spot gold eased 0.1% to $1,767.81 per ounce by 05:20 GMT while US gold futures fell 0.6% to $1,765.70.

Prices declined on Thursday following US Treasury yields rise, reaching their highest since the pandemic, lifting the dollar.


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Jeffrey Halley, senior market analyst at OANDA said "rising inflation expectations as markets price in the reopening of developed market economies are pushing yields higher and pressuring gold."

High inflation rates push gold but it also lifts Treasury yields, which increase the likelihood of holding non-yielding bullion.

The US Federal Reserve's comment that it is not concerned with rising bond yields has added to gold's misery, Phillip Futures said in a note.

 

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