Gold is heading for the worst performance in 6 years
Gold is set to record its worst performance in six years, although prices continued to exceed the important level of 1,800 dollars an ounce (an ounce) in limited trading on Thursday, as the falling dollar faced pressure from the increase in US Treasury yields.
And gold fell in spot transactions 0.1 percent to $ 1801.40 an ounce by 0353 GMT. US gold futures fell 0.2 percent to $1,802.30.
“This kind of swing up and down that has been seen over the last 48 hours is indicative of a lack of any specific fundamental catalysts,” said Ilya Spivak, currency analyst at DailyFX.
Gold prices hit their highest level in a month on Tuesday, but fell to their lowest level in a week in the next session before closing unchanged, and were on track for their biggest annual percentage decline since 2015.
Spivak said the first week of January will provide indications of direction because gold is believed to be stuck between how fast and where inflation is moving, and what and how much the US Federal Reserve does to contain it.
The benchmark 10-year US Treasury yields settled near a month’s peak, raising the opportunity cost of holding non-yielding gold.
As for other precious metals, silver fell in spot trade by 0.5% to $22.70 an ounce, platinum fell 0.3% to $964.96, and palladium fell 0.5% to $1973.75. They are all heading for their worst performance in several years.