Commodities

Gold reaches its lowest in one week as dollar remains strong

The prices of gold in one week on Thursday, as the dollar remained standing tall on the increasing U.S. Treasury yields, with investors eyeing Federal Reserve Chair Janet Yellen’s replacement.

Spot gold went down by 0.2 percent to $1,277.86 per ounce while U.S. gold futures that are due for delivery in December went down by 0.3 percent to $1,279.80 an ounce.

According to HuaAn Gold fund manager Richard Xu, the price of gold might hight the $1,260 level depending on the performance of the dollar in the future. Xu also mentioned that they did not see any factors that would contribute to the increase of the price of gold besides North Korea.

The greenback reached a two-week high against the Japanese yen as it was held up by the recent rise in U.S. Treasury yields and with U.S. President Donald Trump’s upcoming decision on who will replace Janet Yellen as the next Federal Reserve Chair

Treasury yields went up due to expectations of a tighter global monetary policy.

The increased interest rates usually causes the value of the dollar and bump Treasury yields up which causes the prices of gold to go down.

In other precious metals, platinum went down by 0.4 percent to $914.50 per ounce, silver lost 0.2 percent and was at $16.94 per ounce and palladium gained 0.8 percent at $960.10 per ounce.

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