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Editor in Chief Mohamed Wadie

Pro-Trump Rioting Affected Gold Prices Negatively


Sat 09 Jan 2021 | 01:01 AM
Taarek Refaat

Gold prices plunged on Friday following Wednesday's pro-Trump rioting in the Capitol, of which 5 people have been confirmed dead.

Also, lockdowns due to the winter COVID wave, combined with US jobs data, pushed the yellow metal lower after hitting $1,957 on Wednesday.

After dropping $30 an ounce at the start of Friday's trading, the price of gold fell by another $5 to touch its lowest level in a week at $1876 before rising to $1890.

Bond yields were affected slightly by the jobs data, leaving the interest rate on the 10-year US Treasury note at its 10-month high above 1% annually while the underlying market inflation climbed above 2.10%.

This put the real interest rate at 1.04%, very close to a multi-decade low, which coincided with a new record high for gold above $2,000 in August.

“The dollar's rally and nominal bond yields have created headwinds for gold, but conditions remain positive for the metal in the near and medium term, as $ 1,850 looms on the horizon," Swiss Refining and Financing Group MKS Pamp noted.