Choose country & language:

Gold steady despite rising yields

Home >  Daily Market Digest >  Gold steady despite rising yields

Written by:
Myrsini Giannouli

04 February 2022
Share the article

Gold prices remained firm overall on Thursday, as the dollar continued falling but treasury yields rose. Rising treasury yields put pressure on the price of gold, which becomes less appealing as an asset, as it does not pay dividends or interest. On the other hand, the weakening dollar supports gold prices, as traders adjust their expectations of future Federal Reserve rate hikes. 

Mounting tensions between Russia and Ukraine also help to keep the price of gold up, as investors turn to safe-haven assets. Russian President Vladimir Putin stated on Tuesday that Russia does not plan to attack Ukraine, and accused the US of using Ukraine as a tool to contain Russia. Diplomatic talks continue though, and if the situation is resolved peacefully, gold price might drop. 

Gold price exhibited some volatility on Thursday, plummeting to $1,788 per ounce, but rebounded immediately to $1,804 per ounce. For most of the day the price of the commodity stayed above the key $1,800 per ounce level. If the price of gold rises again, it may find resistance at $1,829 per ounce and further up at $1,853 per ounce, while if the price of gold decreases further, support may be found at 1,782 per ounce. This week, the gold price is expected to show some volatility, due to mounting tensions between Russia and Ukraine. 

XAUUSD 1hr chart

TRADE GOLD

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

The dollar remains strong on robust US economic data

Myrsini Giannouli 28 September 2022

Gold prices pressured by a strong dollar

Myrsini Giannouli 28 September 2022

Oil prices edge higher on supply concerns

Myrsini Giannouli 28 September 2022

Cryptocurrencies volatile amid market turbulence

Myrsini Giannouli 28 September 2022

Why TopFX

10-years

10-years

industry presence
as a Liquidity Provider

Spreads

Spreads
from 0.0 pips

and reliable execution

Segregated

Segregated

client funds

First-class

First-class

customer support

Open your Live Account in 3 Steps

Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!