Gold Drops 3 Days In a Row

Gold Falls for Third Day in a Row On the Heels of Stronger U.S. Dollar

Gold prices continued to slide for the third straight session on Tuesday on the heels of a stronger U.S. Dollar. Gold dropped to a four-day low, around the $1340 mark.

A combination of negative factors, ranging from a follow-through U.S. Dollar buying interest and diminishing demand for safe-haven assets kept exerting downward pressure on the precious metal caused the three-day drop in gold prices.

KEY TAKEAWAYS:

  • USD recovery gains traction and prompts further selling
  • Rising US bond yields add to the downward pressure

The greenback has now started showing some signs of a meaningful bounce, after it fell to over three-year lows last week, and has been one of the key factors weighing on dollar-denominated commodities – like gold.

Adding to this, a goodish pickup in the US Treasury bond yields, amid growing expectations that the Fed might opt for a tighter monetary policy tightening cycle in 2018, was further seen driving flows away from the non-yielding yellow metal.

Original Source: https://www.fxstreet.com/news/gold-falls-for-third-day-in-a-row-weighed-down-by-stronger-usd-201802200723

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