Gold Gains Momentum Amid Weaker US Dollar and Supportive Yields
Explore the factors driving gold prices to the brink of $2,000 per ounce, including a weakened U.S. dollar and declining Treasury yields. Discover the market dynamics influenced by economic indicators, Federal Reserve sentiments, and global trends. Stay updated on the latest developments impacting precious metal values. #GoldPrices #US Dollar #TreasuryYields #MarketUpdate”
Gold prices inch higher on Thursday, approaching the crucial $2,000 per ounce threshold, driven by a weakening U.S. dollar and declining Treasury yields, which boosted demand for the precious metal. As of 0143 GMT, spot gold rose by 0.1% to $1,992.59 per ounce, following a three-week peak of $2,007.29 on Tuesday.
U.S. gold futures remained steady at $1,993.30.
The U.S. dollar (.DXY) dipped 0.1% against its counterparts, offsetting gains from the previous two sessions and making gold more affordable for holders of other currencies.
On Tuesday, benchmark U.S. 10-year Treasury yields hit a two-month low. Data revealed a more-than-expected 5.4% decline in orders for durable U.S. manufactured goods in October, signaling a significant cooling of the economy after robust growth in the third quarter.
Although the number of Americans filing new unemployment claims fell more than anticipated last week, concerns persist about a slowing labor market amid higher interest rates. Minutes from the October 31-November 1 meeting of U.S. Federal Reserve officials highlighted a cautious approach to interest rate hikes, contingent on inflation control progress.
Traders widely anticipate the Fed to maintain unchanged rates in December, scaling back expectations of future rate cuts in 2024, according to CME’s FedWatch Tool. Lower interest rates typically reduce the opportunity cost of holding gold.
The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.13% decrease in holdings to 882.28 tonnes on Wednesday from 883.43 tonnes on Tuesday.
Meanwhile, spot silver remained flat at $23.63 per ounce, platinum showed little change at $922.73, and palladium dipped 0.1% to $1,056.63 per ounce.
