Gold drops to its lowest level in more than two weeks with the rise of the dollar

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Gold prices fell today, Tuesday, to their lowest level in more than two weeks, as they were pressured by the strength of the dollar and US Treasury yields, with expectations of 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 0.3 percent to 1706.43 dollars an ounce. Earlier in the session, gold touched $ 1,704, its lowest level since March 12th.
And gold fell in trading in the futures market in the United States 0.4 percent to 1707.30 dollars an ounce.
“The main factor pressing on gold prices is the continued rise in US long-term bond yields,” said Margaret Yang, strategy in the Daily Fix, adding that there is a continuous decline in the price of the yellow metal although it is supposed to rise as a hedge against inflation.
The pressure on gold was increased by the rise of the dollar to its highest level in a year against the yen today, due to investor concerns about the possible consequences of the collapse of the Archigus Capital hedge fund.
In terms of the rest of the precious metal, silver lost 0.5 percent to $ 24.56 an ounce, and platinum also lost 0.5 percent to $ 1170.16.
Palladium rose 0.1% to $ 2,530.23, after losing 5.5% in the previous session.


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