Gold Set to Post Third Consecutive Weekly Loss

Gold is trading close to the lowest levels seen in nine months and is all set to end the third consecutive week in the red as US Treasury

Arslan Butt•Friday, March 5, 2021•1 min read

Gold Set to Post Third Consecutive Weekly Loss

Gold is trading close to the lowest levels seen in nine months and is all set to end the third consecutive week in the red as US Treasury yields rise and the dollar strengthens following Fed chair Jerome Powell’s speech in the previous session. At the time of writing, GOLD is trading at a little above $1,694.

So far this week, gold has lost around 2.3% of its value as rising Treasury yields increase the opportunity cost of holding non-yielding bullion even as a stronger US dollar makes it more expensive for holders of other currencies to purchase the precious metal. In the previous session, the yellow metal prices fell to a low not seen since 8 June 2020 after Powell dismissed concerns about the recent spike in Treasury yields and high inflation.

Powell’s comments drove the benchmark 10-year US Treasury yields above 1.5% and the US dollar to touch the highest level seen in three months. However, losses in gold remained limited as the market sentiment soured once again, sending equities and other riskier assets lower.

Gold prices also received some relief from a spike in US jobless claims over the past week. The unexpected deep freeze in Southern US made it harder for unemployed Americans in the region to seek jobs, causing the surge in numbers.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.