Gold futures dropped Thursday, deepening their descent below the key $1,300 line, after falling this week to their lowest point of the year.
”The firm U.S. dollar and rising U.S. bond yields are continuing to exert pressure,” said Carsten Fritsch, commodities analyst at Commerzbank.
“Yields on 10-year U.S. Treasury notes have climbed further to 3.12%. The yield advantage over German government bonds of the same maturity has meanwhile reached 250 basis points. The last time it was any higher was almost 30 years ago,” he said. “This argues in favor of the U.S. dollar, against the euro and also against gold, which yields no interest.”