Gold slumps, approaching a year’s minimum

Gold slumps, approaching a year’s minimum

On Thursday, gold dived, getting back to a minimum since December in the face of the diving American currency as well as the yield of US government bonds.

June delivery gold futures fell 0.27% on the Comex exchange hitting $1,288.60 per troy ounce. During the night trading, the number one precious commodity recorded a maximum of $1293.70 per troy ounce.

On Wednesday, prices for the most popular yellow metal fell to $1285.7 that was the lowest value since December 27.

Gold slumped due to forecasts of a faster rate of hike in the interest rate of the Federal Reserve, which caused a lift in the yield of US bonds and the greenback.

Increasing the revenue of treasury bonds can potentially provoke a dive in demand for gold as well as other raw materials, which don’t bring profit. The appreciation of the evergreen buck makes gold less accessible to those people, who hold other currencies.

The US dollar index, demonstrating the purchasing potential of the evergreen buck versus its six major rivals, showed 93.21, staying close to the maximum of five months - 93.52 that was achieved on Wednesday.  As a matter of fact, since the beginning of this week, the US dollar index has tumbled by nearly 0.93%.

During night trading, the revenue of 10-year American government bonds rose to 3,117%, which is the highest result since 2011. By the way, the profitability of bonds turns to be inversely proportional to their value.

Surge in the revenue of American Treasury bonds has been observed since the Federal Reserve uncovered in May that inflation is getting closer to the goal of 2%.

As for other commodities, silver futures rallied 0.37%, reaching $16.37 per troy ounce, platinum futures kept to $899.20, while copper futures added 0.24% being worth $3,078 per pound.

Similar

Gold declines on Fed remarks

On Wednesday, gold headed south and kept to a one-year minimum due to the fact the evergreen buck managed to strengthen on Fed Chair’s remarks, which backed views that the US major financial institution considers lifting its interest rates this year…

Popular

Asian shares tumble with Japan markets shut

On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…

Greenback surges as yields soar

On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

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