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Gold prices fall due to higher US yields and dollar strength

Gold prices

Gold prices fell Friday as rising US revenues and the strength of the dollar put pressure on the yellow metal.

However, Gold prices are heading to record the best weekly performance in 7 weeks.

Gold prices

The price of an ounce of gold in spot transactions fell 0.3% to $1716.86 by 05:46 GMT yesterday.

The metal prices fell to their lowest level in nine months on Monday, but the decline in Treasury yields sparked the recovery in gold’s position on the path of achieving a weekly gain of 1%.

“It’s basically the job of high returns, and although the returns have not kept going up, the problem is that they haven’t decreased, and that’s a problem,” said Stephen Ince, senior market strategist at Axi Financial Services.

He added, “Gold prices will stabilize at about $1,700 … unless we reach a new level due to higher returns.”

Since the day after US President Joe Biden signed his $1.9 trillion stimulus plan, gold price is heading to end trading this week at its best performance in 7 weeks.

Oil subsides after 7 weeks of gains

Friday, Brent crude prices fell, but hovered near $70 a barrel, as cuts made by major crude producers restrict supplies, while the market is also supported by optimism about a recovery in demand in the second half of the year.

The price of a barrel of Brent crude futures for May delivery fell 33 cents, or 0.5%, to $69.30 by 07:49 GMT. US West Texas Intermediate crude for April delivery reached $65.65, down 37 cents, or 0.6%. .

After gains that lasted for seven consecutive weeks, Brent crude may end its nearest month contract this week almost unchanged as investors sold crude for profit after prices hit a 13-month high on Monday following an attack on Saudi oil facilities.

Sentiment was also supported by a decision by the Organization of the Petroleum Exporting Countries  and its allies (OPEC+), earlier this month to keep production cuts largely intact in April.

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