In the early morning of the 15th Beijing time, gold futures closed lower on Friday, falling after two consecutive days of gains. Gold lost its first week in 10 weeks as US Treasury yields recently strengthened.
Chris Gaffney, President of world markets at TIAA bank, said the week began with a record high gold price, but ended with “several factors holding down the fall in gold prices”, including hopes for a coronavirus vaccine and an increase in bond yields. The rise in bond yields is part of the reason for the weakness in gold, which does not provide yields.
at the close of the gold futures market on Friday, the yield on us 10-year Treasury bonds rose to 0.693%, an eight week high. On Friday, the yield was 0.562%.
Gaffney said: “in the current environment, the holding cost of gold is negative, and investors are not willing to sacrifice their interests to hold hard assets such as gold.”
gold futures for December delivery on the New York Mercantile Exchange fell $20.60, or nearly 1.1%, to $1949.80 an ounce. In terms of the most active contracts, gold futures fell 3.9% this week for the first time in 10 weeks. On Tuesday, gold futures recorded the largest one-day drop in the dollar since April 15, 2013.
silver futures for September delivery fell $1.63, or 5.9%, to $26.089 an ounce. Silver futures fell 5.3% this week.