Firm Dollar Weighs On Gold

Published on Apr 28, 2022 13:54

Gold is seemingly losing appeal as safe haven amid robust demand for dollar which is soaring towards levels not seen in nearly two decades. Deepening energy crisis in Europe worsened by the Russian gas-halt to Poland and Bulgaria and China Covid concerns are further adding to dollar demand. Besides, surge in US treasury yields amid Fed`s continued policy stance of aggressive tightening amid multi-decade high inflation is sustaining demand for dollar and reducing appetite for the yellow metal. COMEX Gold for June settlement is currently trading at more than two months low of $1883.50, down 0.84 percent from the previous close of $1899.60 an ounce. As measured against a basket of currencies, the dollar index had reached a five-year top of 103.28 and a further push above 103.82 would see it to levels not visited since late 2002.