By William Watts
Gold futures were slightly lower on Thursday, consolidating after hitting a nearly two-week high in the previous session as the US dollar’s pullback gave bulls some breathing room.
Gold and other commodities found support on Wednesday as the US dollar, which rallied in 2022, fell sharply against its main rivals, and Treasury yields continued to slide against at their highest levels in more than a decade.
A stronger dollar can weigh on commodities priced in the unit, making them more expensive for users of other currencies. Rising bond yields increase the opportunity cost of holding non-performing assets.
The ICE U.S. dollar index, a measure of the currency against a basket of six major rivals, rebounded 0.4% on Thursday but remained down 1.7% for the week. The yield on the 10-year Treasury note rose about 4 basis points on Thursday.
“There are early signs that the dollar and rates are beginning to reverse, but until we have more definitive evidence that both are actually peaking, it will be too early to call a bottom for l ‘gold,” analysts at Sevens Report Research wrote in a Thursday note.
(END) Dow Jones Newswire
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