Gold Attempting Recovery Towards $1900

28 Apr 2022 , 03:03 PM

Gold is attempting to rebound after dropping to over two-month lows on Thursday. COMEX Gold futures are currently seen quoting at $1889.22 an ounce, supported by easing dollar ahead of US Q1 GDP data due later in the global day. The yellow metal was losing sheen early in the day and hit a 10-week low of $1873.89 amid robust demand for dollar which soared towards levels not seen in nearly two decades. Deepening energy crisis in Europe worsened by the Russian gas-halt to Poland and Bulgaria and China Covid concerns further added to dollar demand. Besides, surge in US treasury yields amid Feds continued policy stance of aggressive tightening amid multi-decade high inflation is sustaining demand for dollar and reducing appetite for the yellow metal. As measured against a basket of currencies, the dollar index had reached a five-year top of 103.70 and a further push above 103.82 would see it to levels not visited since late 2002.

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