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Gold futures edged lower early Thursday, putting the precious metal on track for a third straight decline after closing at a five-week high to begin the week.
Gold for June delivery
GC00,
GCM22,
fell $11.50, or 0.6%, to $1,944.30 an ounce on Comex, leaving it down 1.6% for the week so far. May silver
SIK22,
was down 56.1 cents, or 2.2%, at $24.71 an ounce, losing 3.9% so far this week.
Gold was pressured Wednesday as the real, or inflation-adjusted, yield on the 10-year Treasury note briefly moved above zero for the first time since 2020. Gold had previously been largely brushing off rising yields, which raise the opportunity cost of holding a nonyielding asset.
Gold has been underpinned by haven-related demand as Russia’s invasion of Ukraine grinds on.
Moscow said it submitted a draft of its demands for ending the war, while the U.S. and its allies raced to supply Ukraine with heavier weapons to counter the Russian offensive in Ukraine’s industrial east. Britain’s Defense Ministry said in an assessment that Russia likely wants to demonstrate significant successes ahead of its annual May 9 Victory Day celebrations.
Gold is likely to remain supported as traders eye the May 9 holiday in Russia, said Stephen Innes of SPI Asset Management, in a note.
“Many are expecting a significant surge in the conflict around this time — there’s increasing pressure on Russia to turn the tide in the war around this important holiday. We should expect more sanctions to be announced by allies in the coming days, which should be favorable for gold via the supply chain and inflation channels,” he wrote.
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