Gold rate falls as yields, dollar rise

On Tuesday, the dollar index rose to 95.83 from a low of almost one week. In the US, 2-year and 10-year yields climbed to 2-year highs, as investors anticipate a more hawkish monetary policy from the Fed. The boost in the USD, as well as rising real yields, undermined the appeal of gold, which fell as low as $1,805 per ounce on Tuesday morning.

Even though a surge in Omicron cases is reported in the US and many other countries, the heavy lockdowns and restrictions of the pandemic seem to be a thing of the past, and the global economy is on the path to recovery. Safe-haven assets such as gold, lose their appeal as risk-appetite grows. 

Gold price picked up a little later on Tuesday and is currently trading at the $1,815 per ounce level. If the price of gold climbs, it may find resistance at $1,829 per ounce, while if the price of gold decreases, the $1,800 level may provide support, while further down, support may be found at 1,782 per ounce. 

TRADE GOLD

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: