Gold Falls With The Rise of US Dollar And Pressure From Treasury Yields

Gold fell on Monday, January 11th, to touch its lowest level in six weeks earlier in the session, as prices remain under pressure due to the rise in the dollar and US Treasury yields.

Gold fell in immediate transactions 1.7% to $1816.53 an ounce, its lowest level since the second of December, and it fell 0.5% to $1839.89. Prices fell 4.4% on Friday. And US gold futures rose 0.3% to $ 1839.90.

The yields of US Treasury bonds for ten years held high above 1%, which helped the dollar to reach its highest level in nearly three weeks against competing currencies, which increases the cost of gold. The higher yield increases the opportunity cost of holding the yellow metal.

Investors took into account the statements of Richard Clarida, Vice President of the US Federal Reserve, who said on Friday that the US economy is heading to a “wonderful” year with the support of Coronavirus vaccines and the possibility of increased government spending.

As for the other precious metals, silver fell 2.5% to $24.72 an ounce, after falling 4.2% earlier in the session. Platinum fell 2.4% to $1038.98, while palladium rose 1.1% to $2,397.07.