Gold, Silver Fall as Higher Interest Rates Pare Metal Demand

BY

Gold and silver fell the most in at least two weeks in New York on
speculation that higher global interest rates will reduce demand for
precious metals as alternative investments.

Bond yields climbed around the world after the Reserve Bank of New Zealand unexpectedly raised rates today. The European Central Bank yesterday raised a benchmark rate to the highest in six years.
Holding gold becomes less attractive when rates rise because the
metal has no fixed returns.

As interest rates go higher and higher, it makes the purchase of
any commodities, which never pay interest or have yield, a poor
judgment.

BY

Fund and chart-based selling sent gold and silver futures sharply
lower Thursday, with weakness triggered in large part by a stronger U.S. dollar and the highest U.S. Treasury yields in 11 months,
analysts said.

朱sir

Yes, absolutoldy agree. I think gold will test the support at 651 again very soon.

朱sir

absolutoldy ---> absolutoldy

JKL

thanks

迷茫之鍊金術士

原帖由 BY 於 2007-6-8 10:53 AM 發表
Gold and silver fell the most in at least two weeks in New York on
speculation that higher global interest rates will reduce demand for
precious metals as alternative investments.

Bond yi ...

thanks!