Gold prices on the Comex settled lower for the third consecutive session on Thursday, as investors weighed the ongoing strength of the U.S. dollar against the metal’s appeal as a safe haven asset.
The most actively traded gold contract, for August delivery, fell 60 cents, or 0.03%, to settle at $1,917.50 per ounce. The contract has fallen more than 1% so far this week.
The dollar index, which measures the greenback against a basket of major currencies, rose to its highest level in more than two weeks. A stronger dollar makes gold more expensive for buyers who use other currencies.
Gold is also being pressured by rising U.S. Treasury yields, which offer investors a higher yield with less risk. The yield on the 10-year Treasury note rose to 3.25%, its highest level since May.
Despite the recent declines, gold is still up more than 12% year-to-date. Investors are still drawn to the metal as a hedge against inflation and other risks, such as a potential recession.
However, the recent strength of the dollar and rising Treasury yields could continue to weigh on gold prices in the near term.
Here are some other factors that could affect gold prices in the near future:
- The direction of the dollar
- The pace of economic growth
- The level of inflation
- Geopolitical events
- Central bank policies
Investors should carefully monitor these factors when making investment decisions.