Gold Gains Momentum Amid Weaker US Dollar and Supportive Yields

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.

Gold Gains Momentum Amid Weaker US Dollar and Supportive Yields

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.

Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing." Contact us: admin@bollywoodfever.co.in

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