Gold prices dropped to new 6-week lows on Wednesday, erasing almost the last of 2023’s previous 7.2% gains against the Dollar as the US currency rose and New York’s stock markets retreated with bond prices in the face of rising interest-rate expectations across developed-world economies.
Dipping as low as $1832 per ounce, the US gold price fell 2.5% for the week so far as the Dollar Index rose to 103.64, the top of its last 7 weeks’ trading range. The precious metal is trading at $1831.97 per ounce at the time of writing.
New UK data meantime echoed the slower inflation reported by the US and Eurozone for January, helping 10-year Gilt yields slip 0.06 percentage points from yesterday’s 5-week highs of 3.55% per annum.
But German and US borrowing costs rose further, nearing their highest in 2023 to date at 2.45% and 3.77% respectively on 10-year Bunds and Treasuries as betting that the US Federal Reserve will end 2023 with its key overnight interest rate higher than today rose to 9-in-10, up from just 1-in-5 this time a month ago.
With short-term rates rising faster, the gap between 2-year and 10-year US yields widened to a new 4-decade record near 0.9 percentage points, the widest yield curve inversion since 1981.
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Gold prices dropped to new 6-week lows on Wednesday, erasing almost the last of 2023’s previous 7.2% gains against the Dollar as the US currency rose and New York’s stock markets retreated with bond prices in the face of rising interest-rate expectations across developed-world economies. Dipping as low as $1832 per ounce, the US gold …<\/p>\n","protected":false},"author":13,"featured_media":72829,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7603,9831,9586],"class_list":["post-80001","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-gold-prices","tag-inverted-yield-curve","tag-recession-concerns"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/80001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=80001"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/80001\/revisions"}],"predecessor-version":[{"id":80055,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/80001\/revisions\/80055"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/72829"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=80001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=80001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=80001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}