Gold futures were beneath 0.24% to $1,981.70 by 11:59 PM ET (3:59 AM GMT) after rising to $1,998.10 on Monday. The war in Ukraine continues, and inflation concerns mount. But gold gave up most of Monday’s gains as the dollar and U.S. 10-year Treasury yields set.
That $2,000 per ounce is quite a crucial level. The fact that gold effectively shut flat on the day means there appears to be a slight reluctance to push immediately higher.
Gold Is Overthrowing the Dollar
Gold can overpower the U.S. dollar strength and break above $2,000, possibly over the next week.
The dollar, which usually moves inversely to gold, framed up on Tuesday, its highest since April 2020.
The U.S. Federal Reserve can also hike its interest rate at its next couple of meetings. At the same time, yields on the benchmark 10-year U.S. Treasury note eased off recent highs.
SPI Asset Management managing partner Stephen Innes told Reuters that now that we’ve tested near $2,000, this will be a bit of an eye-opener towards more traditional gold buyers and more momentum type players, with concerns over recession in the U.S. also placing gold to go higher in the medium term.
Silver and palladium dragged down 0.1% in other precious metals, while platinum increased 1%.
