Gold Under Pressure On Dollar Strength

22 Apr 2022 , 02:28 PM

Strength in the US dollar is adding pressure on Gold on Friday, putting the bullion on course for its first weekly loss in three. The US dollar edged higher tracking benchmark treasury yields higher as Fed chief Jerome Powell added to expectations for aggressive Federal Reserve monetary tightening. The benchmark 10-year U.S. Treasury yield climb as high as 2.968%, around its highest level since December 2018. Meanwhile, the Dollar Index, which tracks the greenback against a basket of six other currencies, traded higher at 100.93, not far removed from the two-year high of 101.03 seen earlier in the week. Gold futures were down to $1,947.40. However, despite a stronger dollar, sharp losses were limited by geopolitical uncertainty that kept the yellow metal supported in tight range. The yellow metal almost hit the $2,000 mark on Monday over safe-haven demand and increasing worries over inflation but has since retreated to hit a two-week low during the previous session.

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