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Gold futures added to their multi-day slide on Tuesday, on track for a four-day skid, with the precious metal falling to the lowest value in about two weeks, breaching the significant $1,800 level again.
The slump comes as Treasury yields extend their rise in a holiday-shortened Thanksgiving week. U.S. markets will be closed on Thursday in observance of Thanksgiving.
December gold
GCZ21,
GC00,
traded $19.60, or 1.1%, lower at $1,786.70 an ounce, extending its move toward the lowest level since Nov. 4, a day after the yellow metal sank 2.4% and marked the sharpest percentage drop since Aug. 6, FactSet data show.
On Monday, gold’s steep decline came amid the White House’s announcement that President Joe Joe Biden has nominated Jerome Powell to a second four-year term as Federal Reserve chairman, and named Fed Gov. Lael Brainard to serve as the central bank’s vice chair.
Markets are betting that Powell may have to move quickly to address out-of-control inflation by accelerating a reduction in the Fed’s monthly asset purchases and possibly picking up the pace of interest-rate increases.
Those factors are seen as bearish for precious metals.
