InstaForex

September 24, 2021

Once Again GOLD Refuses to Fall!

 Gold prices plunged further weighed down by a 10-year surge in U.S. treasury yields and improving market sentiment causing investors to relinquish safe-haven holdings.


In the Asian session, the precious metal traded around $ 1,751 per ounce, up slightly from a one -month low touched in the previous session at $ 1,737 per ounce.


Market sentiment improved as Evergrande, a real estate giant in China was said to be able to avoid default and pay off its debts.



This was also aided by the actions of the People’s Bank of China (PBOC) which had injected liquidity into its financial system ahead of the payment of interest through ‘onshore bonds’ by Evergrande.


This not only prompted a rebound in global stock markets, but also drove the rise in 10 -year U.S. treasury bond yields to their highest level since July at 1.43%.


Investors also eased their holdings on other safe-havens, such as the greenback dollar and the yen, driving major currencies higher.


Gold is also under pressure following expectations the Federal Reserve (Fed) will begin reducing its asset purchases as soon as November and interest rates may be raised faster than expected.