Gold prices retreat as Treasury yields climb
NEW YORK (March 27) Gold and silver futures retreated on Monday as banking-system fears abated and yields on U.S. Treasury bonds climbed, robbing precious metals of some of the safe-haven luster that has helped to fuel a multi-week rally.
Price action
- Gold futures due in April GC00, -1.84% GCJ23, -1.84% fell by $29, or 1.4%, to $1,955 per ounce on Comex after logging their fourth-straight weekly advance on Friday.
- Silver futures due in May SI00, -1.32% SIK23, -1.37% declined by 12 cents, or 0.6%, to $23.20 per ounce.
- Palladium futures due in June PAM23, -1.02% retreated by $8.40, or 0.6%, to $1,406 per ounce, while platinum futures due in April PLJ23, -0.69% declined by $10.20, or 1%, to $973.70 per ounce.
- Copper futures due in May HGK23, -0.54% fell by 2 cents, or 0.4%, to $4.06 per pound.
Market drivers
Gold has transformed into “a barometer for financial stress” over the past month, said Marios Hadjikyriacos, senior investment analyst at XM.
Whether the precious metals continue to climb will depend on several factors, including how the financial system fares and whether the Federal Reserve interest rate cuts that are being priced in by futures traders actually happen, he added.
“As things stand, ‘peak stress’ seems to have passed, so there’s a risk of a retracement after this fierce rally in gold,” Hadjikyriacos said.
Treasury yields climbed on Monday, with the yield on the 10-year note TMUBMUSD10Y, 3.492% up more than 8 basis points at 3.468%.
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