2024-02-15 21:39:34
Gold rises as the dollar and US Treasury yields decline
Gold prices rose today, Thursday, following weak economic data in the United States pushed the dollar and Treasury bond yields lower, while the focus of market traders turned to statements by Federal Reserve officials to obtain more indications regarding when to cut interest rates.
By 18:57 GMT, gold in instant transactions rose 0.6% to $2,004.05 per ounce.
US gold futures rose 0.5% to $2,014.9 an ounce at settlement.
US retail sales fell more than expected in January. A separate report issued by the Ministry of Labor showed that applications submitted for the first time for government unemployment benefits fell by eight thousand applications to a seasonally adjusted level of 212 thousand.
The dollar index continued its losses and ten-year Treasury bond yields fell following the data was released, making gold, which does not generate a return, more attractive to buyers abroad.
Data on Tuesday showed an unexpected rise in consumer prices in the United States, as a result of which gold prices fell by 1.4% on the same day.
Traders currently expect that US Federal Reserve policymakers will wait until June before lowering interest rates. Raising interest rates increases the opportunity cost of owning the yellow metal.
Interest rate expectations are, most of the time, the main driver of gold in the short term, which has increased investors’ fears that gold will remain under pressure in the short term, until the Federal Reserve announces its intention to reduce interest rates, according to Chris Gaffney, head of global markets at Everbank. .
The focus now is on the Producer Price Index numbers due on Friday. Three Federal Reserve officials are scheduled to make statements later in the week.
As for other precious metals, platinum in spot transactions rose 0.9% to $879.36 per ounce. Palladium rose 1.9% to $952.59. Silver increased 2.4% to $22.91 per ounce.
(Reuters, Al-Arabi Al-Jadeed)
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