- January 4, 2022
- Posted by: Stratford Team
- Category: Economy
© Reuters.
By Barani Krishnan
Investing.com – It steadfastly clung to $1,800 for the past four weeks but almost lost that perch as trading began for 2022, in what appeared to be a mixed sign for gold as the U.S. Federal Reserve prepares to execute its first rate hike since the onset of the coronavirus pandemic.
A spike in benchmark U.S. to a six-week high above 1.6% put paid to the bullish adventure gold has been on since early December.
“When real yields rise, the opportunity cost of holding non-yielding gold also rises, dimming its appeal,” Joel Frank said in a post on FX Street.
“The surge in yields appears to have its roots in a surge in confidence about the long-term outlook for the U.S. economic recovery, despite the ongoing risks presented by (the) Omicron” variant of Covid, added Frank.
U.S. gold futures’ most active contract, , fell by $28.50, or 1.6% at Monday’s settlement — its most in a day since Nov. 22. While the …
