(Kitco News) – The gold market is struggling to find some footing as prices slide further below $1,800 an ounce again and analysts are expecting to see some further pain in the near term.
The gold market continues to digest the White House’s news that President Joe Biden will re-nominate Powell to be head of the Federal Reserve. Following the announcement, markets have increased their expectations that the U.S. central bank will tighten interest rates more aggressively in 2022.
December gold prices are lagging near their session lows, last trading at $1,786.50 an ounce, down more than 1% on the day. According to some analysts, although inflation pressures remain supportive for gold, the precious metal has not been able to withstand growing headwinds from rising bond yields.
The 10-year bond yield is currently trading at a one-month high at 1.66%. Daniel Briesmann, a precious metals analyst at Commerzbank, noted that rising expectations of aggressive monetary policy action have pushed higher real yields.