© Archyde.com. South African gold bars. Photo from Archyde.com archive.
From Kafia Gdoro
(Archyde.com) – U.S. bond yields rose on Wednesday, supported by a decline, as investors expect a slower pace of interest rate hikes from the Federal Reserve at its monetary policy meeting next week.
It rose 0.7 percent to $1,783.98 an ounce by 1435 GMT. And US gold futures rose 0.5 percent to $ 1,790.60.
said Bart Melek, Head of Commodity Markets Strategy at TD Bank. Securities “We’re seeing declining rates along the curve here…there’s a slight pullback in the US dollar…we’re just going up from the lows.”
The dollar fell 0.4 percent once morest its rivals, making bullion less expensive for buyers abroad. Benchmark returns for ten years fell to the lowest level in three months.
Market participants widely expect the Federal Reserve to raise interest rates by 50 basis points at its last meeting of 2022, scheduled for December 13-14.
Increasing interest rates aimed at combating inflation is often intended to increase the opportunity cost of owning gold, which does not yield any interest.
CPI data for November in the US is also being awaited, which is due to be published next week.
But uncertainty surrounds the future of bullion due to strong US economic data recently, which has led to fears that the Federal Reserve may increase interest rates more than recently expected.
“There is some suspicion now that traders may have been too quick to conclude that the US central bank is going to cut interest rates and we are now in a bit of a wait-and-see mode ahead of the FOMC meeting next Wednesday,” Melek said.
As for other precious metals, it rose in spot transactions by 2.1 percent, to $ 22.62 an ounce.
Silver is certainly vulnerable to an economic downturn due to its industrial appeal, Robert Rowling, financial analyst at Kenesy Money, said in a note, but it may be spared the worst of any downturn given its importance to the energy transition.
Platinum rose 2.3 percent to $1,011.65 an ounce, and rose 0.7 percent to $1,862.25.
(Prepared by Marwa Gharib and Muhammad Harfoush for the Arabic Bulletin – Edited by Hassan Ammar)
