Forecasts & Analysis | Gold

Gold futures traded to an intraday low of $1782.20 before recovering, closing just above $1800.

The dollar consolidated

As U.S. Treasury yields rise, gold, which is seen as an inflation hedge, is hurting. Despite the obvious warning signs, investors remain bullish.

On Wednesday, the gold markets pulled back a bit due to the 10 year yield spiking in the United States, which of course is toxic for gold.

Silver is testing the support at $27.50.

Gold prices hovered close to a one-week high on Wednesday, boosted by comments from Federal Reserve Chair Jerome Powell that the U.S. economy still needed support.

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Gold is 0.1% higher this morning, as it is trading along yesterday’s daily close. What about the other precious metals?

Essentially, Powell appeared to be trying to sound supportive for economic growth while downplaying the potential impact of higher inflation.

A fundamental tenet regarding money and inflation is that ongoing money creation by governments and central banks (Federal Reserve) cheapens the value of all money (US dollars) in circulation and leads to a loss of purchasing power. The loss in purchasing power shows up in the form of higher prices