Gold Is Getting Hammered As U.S. Dollar Soars

BK Asset Management managing director of foreign exchange strategy Boris Schlossberg breaks down why gold has been getting hammered as the U.S. dollar soars.

“Gold is taking a hammering over the past few weeks because the dollar has been in a strong uptrend,” Schlossberg said. “The reason the dollar has risen because U.S. yields are high. The 10-year now is comfortably parked above the 3% rate, and that always hurts gold which has no yield.”

He added that if investors have the assumption that U.S. yields are going to inch up to the 3.25% level in the next several months, it’s very likely that gold will sell-off.

“But the only thing that can support gold at this point is some sort of geopolitical event that could create a flight to safety trade,” he said.

Click below to watch Schlossberg’s full analysis of gold and the impact of the U.S. dollar:

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