Gold rose in trading Thursday in Asia, after falling to its lowest level in seven weeks during the previous session, but rising US Treasury yields continued to put pressure.
Gold futures rose 0.49% to $1,731.35 during trading, to recover some of its losses on Wednesday when it fell to $1,720.49, its lowest level since August 9. It also jumped and settled above 1.5%, a level not seen since late June 2021.
“Gold is consolidating before falling in another major hit,” Ilya Spivak, currency strategist at Daily Forex, told Reuters, noting the Fed’s move toward asset deleveraging and an interest-rate-raising cycle much steeper than markets initially expected.
“While there are significant risks that could help gold higher, such as weaker economic data or the debt crisis in Evergrande potentially spreading to other economies, they are unlikely to provide lasting support.”
Spivak said a break below $1,700 could see the yellow metal test the $1,675 to $1,680 level.
The article Gold is rising more than 2% during trading in Asia was written in Al Borsa newspaper.