Last updated on August 8, 2023
In the early morning trading on Monday, gold and silver prices have shown weakness due to several factors. One of the main contributors to this decline is the rising U.S. dollar index, which has put pressure on precious metal prices. Additionally, U.S. Treasury yields have also seen an uptick, further dampening investor interest in gold and silver.
The strength of the U.S. dollar can have a negative impact on the prices of commodities like gold and silver. This is because these metals are primarily priced in U.S. dollars, so when the dollar rises, it becomes more expensive for international buyers to purchase them. As a result, demand for these metals tends to decrease, leading to weaker prices.
Similarly, rising U.S. Treasury yields can also impact gold and silver prices. When Treasury yields increase, it indicates higher returns for investors in government bonds. As a result, some investors may shift their focus away from precious metals and towards these fixed-income securities, causing a decline in demand for gold and silver.
These factors have combined to create a selling interest in gold and silver in the early trading session. However, it’s important to note that market conditions can change rapidly, and prices may fluctuate throughout the day.
Overall, the weakness in gold and silver prices can be attributed to the higher U.S. dollar index and rising U.S. Treasury yields. Investors will continue to monitor these factors, along with other geopolitical and economic developments, to gauge the future direction of precious metal prices.
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