Losses of 1.3% for gold as the rally in dollars and bonds continues

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Gold continued its downward trend today, as the strong strengthening of the dollar and government bond yields discourage investors despite the strong crises in the global stock markets.

In particular, the May contract of golden June completed the trades with significant losses of 1.3% or about $ 24 and saw its price fall to $ 1,856 an ounce.

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Despite the fact that the stock markets continue to be under intense international pressure (successive losses of more than 3% for Wall Street, for example), something that traditionally pushes investors to the security of gold, the frantic rally of the dollar works as a deterrent for investors.

In particular, the DXY index of the dollar (against a basket of international exchange rates) has strengthened by 6.7% in May, making the precious metal more expensive for holders of other currencies.

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At the same time, the steadily rising yields on government bonds (which have been at high 4-year highs) also operate in competition with gold, which offers no interest rate.

In other metals, silver came under even greater pressure as its contract fell 2.4% to $ 21.8 an ounce.

Platinum also lost 2% to $ 937, copper fell 1.7% to $ 4,193, while palladium outperformed the general mood of the day, which saw its price rise 1.8% to $ 2,065.

Source: Capital

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