Following A Two-Month Low, Gold Prices Is Treading Water

here has been little change in gold prices early Monday after the most-active contract ended last week at its lowest level of the year due to the strength of the U.S. dollar and rising yields on Treasury securities.

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Price action

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The Comex gold contract for April delivery rose 70 cents, or 0.1%, to $1,818 per ounce.

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Silver SIH23, -0.74% fell by 16 cents, or 0.8%, to $20.77 per ounce in May.

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Palladium PAH23, +4.99% gained $50, or 3.7%, to $55.60 per ounce in June, while platinum PLJ23, 4.80% gained $18, or 2%, to $928 per ounce in April.

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Copper HGH23, +0.71% rose 3 cents, or 0.7%, to $3.98 per pound in May.

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Market drivers

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Despite the fact that data indicates that global central banks have not been able to slow down the economy despite raising interest rates, gold prices have retreated for the fourth consecutive week as of Friday. As a result, expectations are stoked that the Federal Reserve, the European Central Bank, and their rivals may increase their policy rates even higher in an effort to combat inflation.

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Gold prices have suffered as a result of these expectations while global bond yields have risen. On Monday, the yield on the 10-year Treasury note TMUBMUSD10Y, 3.931%, was nearing 4%.

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“So far in February, gold's price has fallen nearly $150 an ounce,” said Rupert Rowling, an analyst at Kinesis Money.

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According to Raffi Boyadjian, lead investment analyst at XM, precious metal prices have been impacted by rising bond yields and firming Fed interest rate expectations.