Gold prices are rising with the decline of the dollar and US Treasury yields, as the ounce recorded an increase in spot transactions by 0.2%.
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Gold rises with the decline of the dollar and US Treasury yields
Gold prices rose today, Thursday, with the decline in the dollar and US Treasury yields, while dealers await new indications of the US Central Bank’s plans to raise interest rates.
Gold rose in spot transactions, by 0.2%, to $1807.57 an ounce, after falling 1% in the previous session.
US gold futures fell 0.1% to $1,814.30, while the dollar index fell 0.2%.
Also, the benchmark US Treasury bond yields fell 10 years after reaching their highest level in 6 weeks in the previous session.
Traders will study the weekly jobless claims numbers in the US for its potential impact on the Federal Reserve’s rate hike strategy.
It is noteworthy that bullion prices will decline at an annual rate of about 1%, under pressure from the sharp increases in US interest rates.
However, prices rose nearly $200 from a more than two-year low hit in September on hopes that the US central bank will slow interest rate increases.
The bank slowed that pace to 50 basis points in December after 4 consecutive increases of 75 basis points each, while US central bank chief Jerome Powell stressed the need to keep interest rates high for some time in order to combat inflation.
It is noteworthy that high interest rates weaken the attractiveness of gold as a means of preventing inflation and increase the opportunity cost of possessing the yellow metal because it does not generate a return.
In terms of other metals, the spot silver price rose 0.2% to $23.57, while platinum rose 0.3% to $1010.67, and palladium rose 0.2% to $1786.97.