Gold Falling Below $1700 Retreating to its Lowest Levels in About 3 Weeks

Gold prices fell on Tuesday, March 30th, to their lowest level in more than two weeks, as they were pressured by the strength of the dollar and US Treasury bond yields with growing expectations for a rapid economic improvement in light of the progress of vaccination campaigns.

Gold, which is considered a safe store of value in times of economic turmoil, is affected by rising bond yields as it increases the opportunity cost of holding gold that does not yield a return.

Gold fell in the spot market 0.8% to $1697 an ounce. Earlier in the session, gold touched 1,704 dollars, the lowest level since March 12th.

The pressure on gold increased the dollar’s ​​rise to its highest level in a year against the yen today, due to investor concerns about the possible consequences of the collapse of the Archegos Capital hedge fund.

Regarding the rest of the precious metal, silver lost 0.5% to $24.56 an ounce, and platinum also lost 0.5% to $1170.16. Palladium rose 0.1% to $2530.23, after losing 5.5% in the previous session.