Gold suffers loss for five straight days, doomed by surging US Treasury yields
Surging U.S. Treasury yields on Wednesday pushed the gold to extend its losing streak. Down for five days in a row, Gold is now at the precipice for the longest losing run in almost a year.
Expectations for a recovering economy from the pandemic pushed U.S. Treasury yields to cap their one-year highs, causing subdued gold trading in the commodities market.
Spot gold dropped 0.4% to $1,786.88 an ounce, and traded at $1,791.04, following Tuesday’s 1.3% decline. A lower closing price at the end of Wednesday trade would result in the gold’s worst run since last March. This is highly likely as bullion’s 50-day moving average retreated below its 200-day counterpart. This is known as the death cross pattern.
In other metals, silver and palladium also subdued together with platinum, which hit the highest intraday level since 2014 on Tuesday.
The Bloomberg Dollar Spot Index improved 0.1%.