Gold falls 1% due to higher dollar yields and debt yields by Reuters

Posted by Pratima Desai

LONDON (Reuters) – Prices fell 1 percent on Wednesday after hitting a six-month high in the previous session on a stronger dollar and higher Treasury yields.

Spot gold fell 0.6 percent to $1,803.09 an ounce by 1721 GMT, after falling as low as $1,796 earlier in the session. US gold futures fell 0.7% to $1,810.40.

Following the corrective pullback and profit-taking, “the daily offshore markets are becoming more bearish for the metal,” said Jim Wyckoff, senior analyst at Kitco Metals, referring to the rising dollar and yields.

US and 10-year Treasury yields held near session highs, weighing on demand for bullion.

– Gold rose by about $ 200 from its lowest level in September (September) for more than two years, amid expectations that the US central bank will slow the pace of raising interest rates, which increases the attractiveness of assets with returns.

“I see the Fed’s aggressive monetary policy being mainly reflected in prices. I’m starting to see inflation come down a little bit,” Wyckoff added. “China is a real wild card right now.”

Bullion hit its highest levels since late June on Tuesday after reports that China will further ease quarantine restrictions, which could lead to some gold buying in the world’s most consuming country.

* However, hospitals and funeral homes in the region have been hard pressed by the increase in COVID-19 cases.

US Home Purchase Contracts fell much more than expected in November, largely due to the Federal Reserve raising interest rates to rein in inflation.

The spot price decreased by 2.2% at $23.52 an ounce, and decreased by 1.1% to $1,008.75, while the price decreased by 2.9% at $1,777.13.

(Reporting by Arundhati Sarkar and Ashitha Shivaprasad in Bengaluru; Editing in Spanish by Carlos Serrano)