Gold rates surge amid decreasing US treasury yields, anticipated economic data

6/24/2024 2:48:51 AM

(MENAFN) Gold rates experienced an uptick on Monday, driven by a decrease in yields on US Treasury bonds. Investors are eagerly anticipating key economic data and statements from US central bank officials throughout the week, which are expected to provide clarity on the timeline for reducing US interest rates.

As of 0155 GMT, spot gold prices increased by 0.2 percent, reaching USD2,324.36 per ounce. Similarly, US gold futures rose by 0.2 percent, settling at USD2,336.70 per ounce.

The yield on 10-year US Treasury bonds fell, registering 4.2496 percent in the latest trading session. This decrease in bond yields boosts the attractiveness of gold, an asset that does not generate interest, making it more appealing to investors in comparison to interest-bearing securities.

Market participants are particularly focused on the forthcoming Personal Consumption Expenditure (PCE) Price Index report, which is the US Federal Reserve’s preferred measure of inflation. Scheduled for release on Friday, this report is expected to offer more concrete indications on the timeframe and scale of potential interest rate reductions.

Moreover, investors are closely monitoring the statements from US Central Bank officials that are due throughout the week. These statements are likely to influence market expectations and provide further insights into the Fed's monetary policy direction.

In the realm of other precious metals, silver in spot transactions saw a slight increase of 0.1 percent, reaching USD29.55 per ounce. Platinum, on the other hand, declined by 0.2 percent, falling to USD990.30 an ounce. Palladium also experienced a slight drop, decreasing by 0.1 percent to USD947.50 an ounce.

Overall, the gold market is buoyed by the current economic environment, with investors seeking refuge in gold amid uncertainty over future interest rate movements and economic stability.

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