2024-01-30 11:39:56
Gold prices rose during trading on Tuesday, supported by a slight decline in the dollar and a decline in Treasury bond yields, as investors awaited the policy meeting of the US Federal Reserve to obtain future indications regarding the timing of reducing interest rates.
“Gold is benefiting from a lower dollar and Treasury yields, even as markets continue to face the prospect of a Fed rate cut in March,” said Han Tan, chief market analyst at Xenity Group.
The dollar index fell 0.1 percent, making gold more attractive to holders of other currencies. Yields on standard US Treasury bonds reached their lowest level in two weeks at 4.0360 percent.
Lower interest rates reduce the opportunity cost of holding gold.
The Federal Reserve’s policy decision is scheduled for Wednesday, following its dovish tilt at its December meeting. Markets largely expect the US central bank to leave interest rates unchanged at the end of the two-day meeting.
Change in prices
By 1030 GMT, the spot price of gold rose 0.2 percent to $2,035.54 per ounce. US gold futures rose 0.5 percent to $2,034.90.
As for other precious metals, platinum fell 0.5 percent to $922.10 per ounce, while palladium rose 0.2 percent to $984.84. Silver fell in spot transactions by 0.5 to $23.09 per ounce.
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