Gold falls 2% at settlement as US bond yields rise

Gold bars 

Gold prices finished in the red today, April 7, as US Treasury yields and US dollar gained ground, after the yellow metal ended its four-week winning streak last week.

June gold futures shed more than 2%, or $61.80, to close at $2,973.60 per ounce, marking the lowest level since March 11 ($2,949).

Meanwhile, the US dollar index, which gauges the greenback’s strength against a basket of six major currencies, climbed by 0.25% to 103.30 at 9:46 pm Makkah time, after touching 103.52 earlier in the session.

“Gold retreats as investors turn to cash and other safe havens like the Swiss franc and the Japanese yen amid market turmoil, creating a risk of deeper corrections,” said Nikos Tzabouras, senior market analyst at Tradu.com.

Separately, Tim Duy, chief US economist for SGH Macro Advisors, pointed out, “We anticipated [Federal Reserve Chairman Jerome Powell] would lean hawkish Friday, but he went a step further even as equities were crashing, and market participants may have missed a key insight, scary as it might be.”