Gold prices rise as US Treasury yields fall, key economic data await

(MENAFN) On Monday, Gold prices experienced an uptick, driven by a decline in yields on US Treasury bonds. This movement in the gold market occurred as investors looked ahead to crucial economic data and anticipated statements from US Federal Reserve officials, which are expected to shed light on the timeline for potential reductions in US interest rates. As of 0155 GMT, gold prices in spot transactions had risen by 0.2 percent, reaching USD2,324.36 per ounce. Similarly, US gold futures saw an increase of 0.2 percent, bringing them to USD2,336.70 per ounce.

The yield on ten-year US Treasury bonds fell, most recently recording a rate of 4.2496 percent. This decrease in bond yields enhances the appeal of gold, an asset that does not yield interest for investors, making it a more attractive option in comparison. Market participants are keenly awaiting the release of the personal consumption expenditures (PCE) price index report in the United States, scheduled for Friday. This report is significant as it serves as the US Federal Reserve’s preferred measure of inflation, and its results are expected to provide further insight into the timing and extent of forthcoming interest rate reductions.

In addition to the economic data, investors are also poised to closely monitor statements from officials of the US Central Bank throughout the week. These communications are anticipated to offer further guidance on monetary policy directions and potential adjustments in response to economic conditions.

The impact of these market dynamics was also felt across other precious metals. Silver in spot transactions increased slightly by 0.1 percent, reaching USD29.55 per ounce. In contrast, platinum experienced a marginal decline of 0.2 percent, bringing its price down to USD990.30 per ounce. Palladium similarly saw a small decrease of 0.1 percent, with its price settling at USD947.50 per ounce.



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