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Gold rises for a fourth day as bond outlook and dollar weaken
Gold is up nearly 8% over the past week, supported by US Treasury buybacks after long-dated yields hit multi-decade highs.
Gold edged higher for a fourth straight day as traders focused on Treasury market developments, with inflation worries easing and attention shifting to the bond outlook and the dollar, according to LiveMint Markets.
Bullion posted small gains on Tuesday after an earlier spike that pushed prices to almost $4,700 an ounce, the highest intraday level since mid-May, helped by declines in crude prices that soothed inflation fears.
Gold benefited from softer bond yields because it does not pay interest, while it has gained almost 8% over the past week following US Treasury buybacks aimed at stopping a months-long selloff that lifted the longest-dated yields to the highest levels in almost two decades.
The rally is also tied to renewed interest in the “debasement trade” amid concerns about faster-than-expected growth in US debt and court decisions reversing tariffs, LiveMint Markets reported. Separately, investors are watching comments from Fed Chair Kevin Warsh at Jackson Hole on Friday for clarity on how the Federal Reserve should respond to stubborn inflation.
Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%