In the early morning of the 13th Beijing time, gold futures prices closed slightly higher on Wednesday, partially recovering the decline of more than 4% a day earlier. The yield of US Treasury bonds fell from the daily high, and the US dollar fell slightly, providing some support for precious metals.
the reason for the recent weakness of gold price is that the yield of benchmark government bonds has risen steadily recently, which provides investors seeking safe haven with alternative investment objects other than gold and silver, which does not provide yield.
Craig erlam, senior market analyst at OANDA, said in a report that the rise in US Treasury yields on Tuesday “dealt a significant blow to the precious metal market.”
Craig erlam said that as real interest rates in the United States turned negative and continued to fall, gold futures prices this summer hit an all-time high. As a result, the sudden surge in US bond yields in the past few days “has stimulated funds to flee the precious metal market, and market exports have become unusually crowded.”
Lukman otunuga, senior research analyst at fxtm, said: “the outlook for gold prices is still bullish, and the recent correction may open the way to a new historical high as fundamentals stimulate demand for metals. From a technical point of view, if the closing price of gold futures this week is higher than $1900, it may indicate that gold prices will rise further in the medium term
on Wednesday, the price of gold futures for December delivery on the New York Mercantile Exchange rose $2.70, or 0.1%, to $1949 an ounce, before falling to $1874.20 an ounce.
silver futures in September fell 7 cents, or 0.3%, to $25.979 an ounce. Silver futures fell 11% yesterday, the biggest one-day drop in the dollar since September 23, 2011.