Bond Yields Put Pressure on Gold Prices

The rise in US bond yields increased the pressure on the gold and commodities class.

Bond yields put pressure on gold prices. Gold prices continued to decline in the second day, with the pressure of rising bond yields in the USA. An ounce of gold started the new day with losses after losing 0.5 percent on Thursday and is currently trading at $ 1,745. Along with gold, other commodity class assets were also seen to decline. Silver and platinum were prominent assets among those experiencing a decline. The Bloomberg Dollar Index, which gained 0.5 percent on Thursday, remained flat. While 10-year bond yield in the US exceeded 1.70 percent on Thursday, it declined slightly on the last trading day of the week. Also on Thursday, the US 30-year bond yield was seen to set 2.5 percent, climbing to the highest level in nearly 1.5 years. Analysts drew attention to Fed Chairman Jerome Powell's messages and the inflation outlook, who made statements at a press conference recently. John Feeney of Guardian Gold Australia stated that the Fed's Chairman did not make enough statements to calm the bond market, and that gold investors had difficulty navigating this period due to bond yields. However, Feeney pointed out that investors ignore the fact that gold prices may increase in an environment where bond yields and interest rates increase as long as there is inflation.

Gram Gold Falls

With the depreciation of ounce of gold, the strengthening of the Turkish Lira after the CBRT's interest rate decision, which was higher than the expectations, also had its effect on the appearance of gram gold in domestic markets. After the decision, in parallel with the decline in the USD/TL exchange rate, gram gold saw below the level of 407 TL and then stabilized around this level. Following the pricing after the decision of the CBRT on Thursday, a gram of 24-carat gold bullion in the Grand Bazaar closed the day at 408.00 liras with a decrease of 2.32 percent. In the Istanbul Grand Bazaar, the quarter gold is traded at 662.00 liras at the closing and the Republican gold at 2.709 liras, while the gram price of 24 carat gold bullion fell by 2.32 percent compared to the previous closing and was traded at 408 liras.