Spot gold fell 1.2% to US$1,748.65 per ounce on Tuesday, and rebounded to near the 1760 mark in late trading. U.S. Treasury yields and the rise in the US dollar weakened the attractiveness of safe-haven gold. Investors waited for the key to be announced later this week. U.S. non-agricultural employment data.

David Meger, director of metal trading at High Ridge Futures, said that the US dollar and US bond yields have risen after a slight correction in the past few days, and the stock market rebounded, which is driving down gold prices. The dollar is close to the one-year high it hit last week, making gold more expensive for holders of other currencies. Investors are still weighing the impact of high inflation on gold prices. Aakash Doshi, head of Citi’s commodity research, wrote in a report that we agree with gold bulls’ statements about the persistence of inflation--especially this winter because energy prices may rise. But in the end, this may push up the bottom of the gold price, rather than supporting the continued bull market upward cycle.

U.S. oil prices continued to rise from a seven-year high on Tuesday. U.S. oil once rose more than 2% to $79.48 per barrel, approaching the critical psychological threshold of $80 per barrel. The day before OPEC+ decided to maintain its supply agreement, although soaring energy prices have triggered concerns that more petroleum products will be used for power generation. At the OPEC+ meeting on Monday, Saudi Arabia and its partners chose to moderately increase production by 400,000 barrels per day in November.

U.S. natural gas futures prices jumped to a 12-year high as global supply shortages intensified market concerns about insufficient supply in the U.S. before the winter in the northern hemisphere. Phil Flynn, a senior market analyst at Price Futures Group Inc., said that there is no room for error in the system and that if there is a cold winter, prices may rise sharply. Goldman Sachs Group predicts that due to high natural gas prices, power generation this winter may lead to an additional 650,000 barrels of crude oil demand per day.

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