On Tuesday, the precious yellow metal gold futures’ prices had beaten a hasty retreat amid a sharper-than-anticipated comeback from the American currency, while a robust rise in US Treasury bond Yields added to further strains.
In point of fact, both spot gold and US gold futures’ prices took a tattering header of more than 1.5 per cent, remarking their largest intra-session plunges in a month, as the greenback rose sharply against most major and emerging market currencies and US 10-year Treasury bond notes were last trading at 1.37 per cent.
On top of that, a revival of the US Dollar’s safe-haven appeal following Friday’s nonfarm payroll miss had accelerated the rally further with Dollar gaining as much as 0.21 per cent and 0.39 per cent to $0.8441 and $0.7254 respectively against the bloc’s common currency euro and British Pound, while safe-haven Japanese yen pummelled over 0.4 per cent to 110.28 yen per Dollar, eventually taking shine off the precious metal.
Apart from that, a rise in delta cases leading to renewed pandemic restriction measures in major G20 economies around the globe, had tottered Wall Street on Tuesday despite a stronger closure in Asian equities, suppressing the yellow metal further while supporting the cause of greenback.
Gold falls over 1.5 per cent as American Dollar rebounds
Citing statistics, after scaling as much as 2-1/2-month higher on Friday following US nonfarm payroll miss, spot gold prices had retraced over 1.6 per cent to $1,794.57 an ounce, marking its worst intra-session plunge since August 9, while US gold futures’ prices had rounded off the day 1.9 per cent lower at $1,798.5 per ounce.
Meanwhile, adding that the greenback would likely to engender rooms to advance further and press the precious yellow metal, a senior market strategist at RJO Futures, Daniel Pavilonis said, “The gold market is seeing some retracement.
the reality is they (Fed) want to start to taper it off, so the (gold) market is going to look to position itself ahead of it actually happening”.