Gold heads south on soaring greenback

Gold heads south on soaring greenback

On Friday, demand for gold slumped in the face of the growth of the evergreen buck.

Gold futures went down 0.08%, ending up with about $1,288.4 per troy ounce.

Prices for gold went down due to the appreciation of the greenback as well as the yield of US government bonds.

The US dollar index, normally gauging the purchasing power of the major American currency against six leading rivals, stuck with a low of five months - 93.69.

Gold is traditionally traded in the US dollar, therefore gold prices depend a lot on the value of the evergreen buck. With a strengthening greenback gold becomes more costly for those who keep other currencies.

In addition, prices of the number one precious metal dived due to the growth in the yield of American bonds. The revenue of 10-year US government bonds accounted for 3.089% after Thursday recorded a peak of seven years – up to 3,126%.

The surge in the yield of American bonds, upbeat economic reports as well as the acceleration of inflation have underpinned forecasts for a further increase in the Fed's interest rate and also tightening of monetary policy.

In March, the Federal Reserve lifted the interest rate and also predicted two more of its increases by the end of the year. However, some investors predict that there will be up to three such lifts. A higher interest rate, usually acts as a support for the evergreen buck because it makes dollar assets more attractive for profit-seeking traders.

A faster lift in the interest rate becomes rather a negative factor for gold prices, whose owners simply don’t get interest. When the cost of borrowed funds is going up, it’s very difficult for the most popular yellow metal to compete with high-yield assets.

Silver futures dived 0.49%, hitting $16.40 per troy ounce.




Something more Important than NFP
Something more Important than NFP

For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.    

Latest news

What Currency Will Overperform?
What Currency Will Overperform?

S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera