Gold prices rise amid weaker dollar, lower US Treasury yields
Date
5/16/2024 3:58:04 AM
(MENAFN) On Wednesday, Gold prices soared to their highest level in over three and a half weeks, bolstered by a weakened dollar and a decline in US Treasury bond yields. This surge followed data indicating that US consumer prices increased less than anticipated in April, heightening expectations that the US Federal Reserve might cut interest rates. Specifically, spot gold rose by 0.5 percent to USD2,369.49 per ounce by 14:49 GMT, while US gold futures for June delivery climbed 0.6 percent to USD2,374.60 per ounce.
The US consumer price index (CPI) saw a modest rise of 0.3 percent last month, following increases of 0.4 percent in both March and February. This pattern suggests that inflation is continuing its downward trend at the outset of the second quarter, reinforcing market speculation about a potential rate cut by the Federal Reserve in September. Economists surveyed by Reuters had expected a 0.4 percent monthly increase and a 3.4 percent annual rise in the index.
Contributing to gold's appeal, the dollar fell by 0.4 percent against a basket of major currencies, hitting its lowest levels in over a month, which made gold more attractive to investors holding other currencies. Additionally, the yields on ten-year Treasury bonds dropped to their lowest point in more than a month, further supporting gold prices.
Other precious metals also saw gains: silver increased by 1.2 percent in spot transactions to USD28.93 per ounce, palladium rose by 1.2 percent to USD989.45 per ounce, and platinum jumped 1.7 percent to USD1,048.40 per ounce, nearing its highest levels in a year.
MENAFN16052024000045015682ID1108220126
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.