iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Gold faces a weekly loss due to rising bond yields in early trade

4 Aug 2023 , 10:05 AM

On Friday, investors were preparing for the closely anticipated U.S. jobs report after a run of positive economic reports this week sent Treasury yields to nine-month highs, and gold prices appeared to be headed for their worst week in six.

Spot gold was up 0.1% at $1,936.15 per ounce, while U.S. gold futures were up 0.2% at $1,971.70.

Since their lowest point on July 11 in the previous session, gold prices have dropped more than 1% this week.

On Thursday, U.S. long-term Treasury yields reached their highest level since November as a result of reducing inflationary pressures in the employment and other economic indicators.

As bond yields increase, gold’s allure decreases since it offers no interest.

According to data released on Thursday, while layoffs decreased to an 11-month low in July due to the continued tight job market, the number of Americans submitting new claims for unemployment benefits increased marginally last week.

On Thursday, the Bank of England hiked its benchmark interest rate for the 14th consecutive time, reaching a 15-year high, and issued a warning that borrowing rates would likely remain high for some time.

According to a survey, the manufacturing fall in July was accompanied by a further slowing of development in the euro zone’s dominating services sector. As a result, the decline in economic activity was greater than first anticipated.

Fabio Panetta, a member of the ECB board, spoke on Thursday in favour of maintaining the bank’s high interest rates for an extended period of time.

On Thursday, the governor of China’s central bank vowed to direct more financial resources toward the private sector.

Platinum increased by 0.3% to $917.29 and spot silver increased by 0.2% to $23.6 per ounce. Both were slated to post losses for the third straight week. At $1,260.65, palladium was up 0.2%.

For feedback and suggestions, write to us at editorial@iifl.com

Fortune India: Business News, Strategy, Finance and Corporate Insight

Related Tags

  • FED
  • gold
  • inflation
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.