Gold Is Falling With Stocks and Bonds Are the Reason
Gold price outlook has turned defensive as rising bond yields lift the cost of holding a metal that pays no interest and the dollar firms.
Written by
Fawad Razaqzada
Market Analyst
Gold price outlook has turned defensive as rising bond yields lift the cost of holding a metal that pays no interest and the dollar firms.
Fawad Razaqzada, StoneX Media Market Analyst, breaks down what is driving gold lower and what the Federal Reserve meeting changes for the metal.
Rising oil prices are keeping inflation concerns alive and pushing U.S. Treasury yields higher, which weighs on gold and bitcoin because neither pays a yield. Equity markets are struggling at the same time, so gold is not behaving as the refuge a risk off tape normally produces. Until the dollar debasement trade returns, the U.S. dollar remains the dominant driver.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of FOREX.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by FOREX.com.
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