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Gold and silver down: At 6-week lows and over two-year lows respectively

Precious metal prices fell again on Thursday, with gold falling to its lowest level in about six weeks and silver closing at its lowest level in more than two years as investors bet that interest rates will remain high for longer period of time.

“Both gold and silver are suffering due to similar reasons: rising expectations for more rate hikes on both sides of the Atlantic and a strong US dollar,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. . Silver, however, “has underperformed of late on heightened concerns about the health of the Chinese economy, where the country’s zero-covid policy and energy issues have hit the sector.”

In this climate, Mr gold U.S. crude for December delivery lost $18.70, or 1.1%, to $1,707.50 an ounce, closing at its lowest level since July, according to FactSet data.

At the same time, the silver U.S. crude for December delivery lost 31.2 cents, or 1.7%, to $17.57 an ounce, the lowest since June 2020.

In the other metals, o copper U.S. crude for December delivery fell 8.55 cents, or 2.4 percent, to $3.433 a pound, the lowest in nearly 18 months. In the meantime, the palladium for December delivery slipped $68.90, or 3.3%, to $2,010 an ounce, while platinum It fell $23.20, or 2.8%, to $803.80 an ounce.

While gold is typically seen as a hedge against inflation, higher interest rates have hit the precious metal, making bonds and the dollar more attractive by comparison.

“Gold is under pressure as inflationary pressures will lead all major central banks to aggressively tighten to control inflation. Rising global bond yields are weighing on gold and this trend may continue for some time to come.” , said Edward Moya, senior market analyst at OANDA.

The ICE US Dollar Index, a gauge of the greenback’s strength against a basket of currencies, rose 0.9 percent, while the 10-year Treasury yield rose 14 basis points to 3.273 percent.

Source: Capital

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