Gold prices rise on dollar fall, treasury yields

(MENAFN) Gold prices saw an uptick on Thursday, following a significant surge in the previous session, as both the dollar and Treasury bond yields experienced declines. This movement in the market came in response to US consumer price inflation data, which raised speculation about the possibility of an interest rate cut in September.

As of 0553 GMT, gold prices in instant transactions rose by 0.2 percent to USD2,391.78 per ounce, marking its highest levels in over three weeks, as observed on Wednesday. Similarly, US gold futures also recorded a modest increase of 0.1 percent, reaching USD2,396.10.

The decline in the dollar against a basket of other major currencies contributed to the rise in gold prices, as it made the yellow metal, priced in US currency, comparatively cheaper for holders of alternative currencies. Additionally, yields on 10-year Treasury bonds touched their lowest levels in more than a month, further bolstering gold's appeal.

Tim Waterer, the chief market analyst at KCM Trade, noted that with inflation showing signs of resuming its downward trajectory, gold has demonstrated strength in early trading and seems poised to approach the USD2,400 mark. However, Waterer cautioned that potential increases in the dollar or Treasury yields could pose significant challenges for gold prices throughout the remainder of the week.

Meanwhile, in the realm of other metals, silver experienced a decline in spot transactions, falling by 0.4 percent to USD29.56 per ounce, following its earlier ascent to its highest levels since February 2021 earlier in the session.



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