Home›Commodities›Precious Metals›Gold rebounds more than 2% as long yields slip and the…

Gold rebounds more than 2% as long yields slip and the dollar weakens

Gold is trading around $4,458, after the 10-year Treasury yield fell more than 5 basis points and the 30-year yield dropped nearly 9 bps following larger longer-dated buyback plans.

Reported · Written up by our desk · Precious Metals

Gold prices rose sharply on Wednesday, bouncing back after the prior session as a weaker US dollar and falling long-term Treasury yields boosted demand for the metal.

At the time of writing, XAU/USD traded around $4,458, up more than 2.5% for the day. The US benchmark 10-year yield was down more than 5 basis points, and the 30-year yield nearly 9 bps lower after the US Treasury said it would increase the size of liquidity-support buybacks for longer-dated government securities.

The US Dollar Index, which tracks the greenback against a basket of six major currencies, was near 99, down 0.64% and at its lowest level since June 1. FXStreet also noted that lower Treasury yields can reduce the opportunity cost of holding gold, while a weaker dollar makes the commodity less expensive for non-US buyers.

Looking ahead, FXStreet said gold’s near-term direction may hinge on Federal Reserve signals and developments in the Middle East as the US economic calendar stays light. Minutes from the July FOMC meeting are due later, and traders have trimmed the chance of a September rate hike to 32% based on CME FedWatch, while commentary highlighted softer recent data as a factor, alongside concerns tied to rising US government debt and central bank buying, particularly from China.

Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%

More like this

Sources