By Francis Ogwo
The prices of gold traded at $1,826/ounce which was about 0.50% loss in value. This is coming as global investors weighed the soaring value sighted in the U.S dollar.
The U.S dollar which normally which maintains an inverse progression to the precious metal was at its highest levels in over two months on Wednesday and thus kept its bullish run, taking into account the U.S dollar index was up by 0.23% to trade at 91.315 index points.
In addition, the Benchmark 10-year U.S Treasury yield also rose to its highest point in more than three weeks.
Chief Global Market Strategist at Axi,Stephen Innes had in an interview with Nairametrics spoke on prevailing macros weighing on the precious metal in the near term.
Innes said: “Gold has relinquished its January seasonality boost. With Chinese physical demand getting balloted down due to the LNY mobility restrictions, the market remains a seller on rally environment. Gold trade flat overnight as FX market did little to show the way.”
“The long positioning in silver seems to have been reduced pretty quickly after the spike on Monday, with the metal having now gone from $25 to $30 and back to $27. Gold seems to have been dragged back to the bottom of its range for the past few weeks.”