Gold prices have stabilized after settling at their lowest following the first session in 2022 in the wake of rising stocks and Treasury rates, Report informs referring to Market Watch.
February gold futures fell $28.50, or 1.6%, to settle at $1,800.10 an ounce on Comex after tapping a low of $1,798.20. The settlement was the lowest for a most-active contract since December 21, FactSet data show.
“The gold market is fighting negative sentiment from gold’s 3.6% annual decline in 2021,” analysts at Zaner wrote.
“Unfortunately for the bull camp, US Treasury yields remain high and could threaten silver and gold longs as the markets look ahead to this Friday’s nonfarm payroll report,” they said. “Expectations for this week’s monthly nonfarm payroll report project a gain of 400,000 jobs, which is nearly double the surprisingly negative reading from November.”
The slide for the precious metal, however, comes as a seasonally strong period of buying in precious metals is expected to commence, analysts said.
“The December-January period is historically very strong for bullion, which has gained in 8 out of the last 10 Januaries,” wrote Marios Hadjikyriacos, senior investment analyst at brokerage XM.