US bond yields weaken, but gold prices rise and fall!

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Despite weaker-than-expected US data, market expectations that the Fed would pause rate hikes strengthened further and US bond yields fell. Coupled with the safe-haven support triggered by concerns about a possible U.S. debt default, gold prices once spiked to around $2,041, but then gold prices quickly turned from gains to losses as a result. Fears of a global recession led to safer-haven dollar purchases. With the US dollar index rising to its highest level in more than a week, weighing on gold prices and the Bank of England rate hike also increasing gold’s Opportunity Cost holdings. Need to watch out for the risk of a short-term decline in gold prices.

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