GOLD PRICE TUMBLES FROM RECORD HIGHS AMID US DOLLAR RALLY
- Gold prices see second day of decline, falling to $2,159 after peaking at an all-time high of $2,223.
- The Federal Reserve's dovish stance on interest rates keeps US yields down, except for US Dollar.
- Odds for Fed rate cut in June remain above 70% via CME FedWatch Tool.
Gold prices drop for the second consecutive day on Friday after hitting an all-time high of $2,223 on Thursday. Renewed demand for the Greenback amid falling US Treasury bond yields surprised traders and weighed on the yellow metal. At the time of writing, XAU/USD trades at $2,159, losing 0.90%.
The Federal Reserve's March meeting emphasized the need for policymakers to lower interest rates despite the latest two inflation reports suggesting that it´s reaccelerating. This sponsored XAU/USD’s leg up to new all-time highs, but it was short-lived.
On Thursday, traders booked profits, triggering a decline of $36 as the yellow metal finished the day with losses of 0.22%.
US Treasury yields failed to climb even though the Greenback is on a two-day rally. It gained 0.47% and was up at 104.45 late in Friday’s North American session. The lack of economic data on the calendar has kept the markets slightly calm ahead of the weekend.
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