The price of gold continues to decline on Tuesday morning due to the strengthening of the US dollar.
The price of the April gold futures on the Comex sank 0.67%, to $1,711.4 per troy ounce. Meanwhile, May silver futures fell 2.22%, to $26.085 an ounce. On Monday, the price of gold lost 0.8%.
The dollar index, on the contrary, rose 0.2%. The indicator demonstrates positive dynamics for the second day in a row and for the first time since February 8, it crossed the mark of 91 points. As a result, the rising dollar makes gold less affordable for owners of other currencies.
Market participants continue to monitor other factors affecting the price of gold. Particularly the yield of Treasury bonds and hopes for the adoption of the stimulus package to support the US economy.
According to the results of the past week, the most actively traded futures for gold sank by 2.7%, and for the entire February by 6.6%. This indicator turned out to be the largest since the end of 2016.
The Fed believes that the growth in government bond yields speaks of optimistic expectations for a global economic recovery amid the COVID-19 vaccination campaign and the likely adoption of new stimulus measures.
The strengthening of the US dollar, in which a significant part of commodities is denominated, may significantly weaken the investment attractiveness of gold against assets with guaranteed returns because gold does not bring coupon yields.
Experts believe that gold futures have begun to show a steady decline since the beginning of Monday, including against the backdrop of rising US stock markets. The approval of the vaccine by the American company Johnson & Johnson has whetted investors' appetite for risk.
The Johnson & Johnson vaccine was approved by the US Centers for Disease Control and Prevention over the weekend. Earlier, it was approved by the US Sanitary and Pharmaceutical Surveillance Service.
Another long-awaited news was the adoption of the House of Representatives of the $1.9 trillion stimulus package proposed by the administration of President Joe Biden.
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