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Gold rallies to a three-month high as dollar slips and bonds tumble
Gold climbed 1.3% to $4,575, tracking a weaker US dollar and a bond-market selloff tied to rising long-term borrowing concerns.
Gold prices rose to a three-month high as the US dollar weakened and investors turned away from treasuries amid turbulence in the bond market, according to Guardian Business.
The outlet said gold was up 1.3% to $4,575 during the session, after touching $4,601 earlier in the day. It noted the move came alongside worries that surging US borrowing costs could reflect concerns about debt sustainability and inflation pressures.
Guardian Business linked the backdrop to a selloff in the US bond market, citing anxiety around Donald Trump’s handling of the economy and concerns that the US war with Iran is contributing to higher inflation expectations.
The report also said the US dollar’s decline supported the rally, with the dollar down 0.01% against the pound at 73.3p and down 0.04% against the euro at 85.5 cents. It added that the US Treasury signaled the possibility of increasing government bond buybacks after the department doubled buybacks for longer-dated securities, moves that had helped push the 30-year yield lower.
Latest closeGold $4,432.00 ▲1.6%