Precise Investors

Monday, January 30, 2023
Alternative Investments

Gold futures post a third consecutive decline


Gold for June delivery fell $7.40, or 0.4%, to settle at $1,948.20 an ounce on Comex, leaving it down 1.4% for the week so far

Gold futures posted a third consecutive decline on Thursday, extending their retreat from Monday’s high above $2,000 an ounce.

Gold for June delivery fell $7.40, or 0.4%, to settle at $1,948.20 an ounce on Comex, leaving it down 1.4% for the week so far. May silver lost 65 cents, or 2.6%, at $24.621 an ounce, losing more than 4% so far this week.

Gold was pressured Wednesday as the real, or inflation-adjusted, yield on the 10-year U.S. Treasury note briefly moved above zero for the first time since 2020. Gold had previously been largely brushing off rising yields, which raise the opportunity cost of holding a nonyielding asset.

This week’s chorus of hawkish Federal Reserve comments and a return to positive real rates have reduced the appeal of both gold and silver, analysts at Zaner wrote in Thursday’s newsletter.

On Thursday, Fed Chairman Jerome Powell said it is ‘appropriate in my view to be moving a little more quickly’ on raising interest rates.

Gold and silver also fell as a precipitous decline in the dollar has had little cushioning influence for prices, highlighting a serious lack of buying interest on the sidelines, the Zaner analysts said.

Still, gold has been underpinned by haven-related demand as Russia’s invasion of Ukraine continues.

Gold is likely to remain supported as traders eye the May 9 holiday in Russia, said Stephen Innes of SPI Asset Management, in a note.

Many are expecting a significant surge in the conflict around this time — there’s increasing pressure on Russia to turn the tide in the war around this important holiday. We should expect more sanctions to be announced by allies in the coming days, which should be favourable for gold via the supply chain and inflation channels, he wrote.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply