Losses for gold in the day and in the week

With losses in the day, but also in the week, gold closed its first in three weeks, under the pressure of the prospect of faster and more aggressive interest rate hikes by the US Federal Reserve, in order to be placed control inflation.

“In recent days, investors have been focusing on rising interest rates and tightening monetary policy, which may remain so until the Fed meeting in May,” Colin Siejinski, SIA Wealth Management, chief market strategist, told MarketWatch. .

“The prospect of a more hawkish Fed has led to a rally in the US dollar, which is an obstacle for gold, but also for other currencies, such as the Japanese yen or the British pound,” he said.

THE June delivery gold thus losing $ 13.90 or 0.7%, closing at $ 1,934.30 per ounce, losing 2.1% per week. The May silver lost 36 cents, or 1.5 percent, to $ 24,259 an ounce. Silver lost 5.6% on a weekly basis, its biggest drop since late January.

The drop in gold this week is also linked to the three-year highs reached by US government bond yields.

The yield of the 10-year T-bond reached 2.911%, while that of the 2-year year was 2.717%, the highest since December 2018, after the statements of the Fed chairman, Jay Powell, that an increase in interest rates by the central bank of the class of 50 basis points “is on the table” in view of the May meeting.

In an environment of rapidly rising interest rates, gold is expected to be under pressure, as it does not provide a return, so it loses in attractiveness to other assets.

In the other metals, the copper May lost 2.6% to $ 4,582 a pound, losing 3% a week. THE July platinum lost 4.2% to $ 927.40 an ounce and lost 6.7% on a weekly basis. The palladium June closed at $ 2,376.30 an ounce, down 1.8% on the day but gaining 0.9% on the week.