Gold prices fall during week despite Friday's gains amid falling US Treasury yields
Date
8/11/2024 6:01:37 AM
(MENAFN) Gold prices experienced a minor weekly decline, despite a slight rise on Friday, which was bolstered by falling U.S. Treasury bond yields. This decrease in yields heightened investor expectations for a potential interest rate cut by the U.S. Federal Reserve in September. Spot gold prices ended the week down approximately 0.5 percent, despite a 0.16 percent increase on Friday, settling at USD2,431.32 per ounce. In contrast, U.S. gold futures saw a modest rise, closing up 0.4 percent on Friday at USD2,473.40 and achieving a weekly gain of 0.14 percent.
The precious metal saw a significant drop of about 3 percent on Monday as investors realigned their positions amid a broader stock market sell-off. The weakening of the dollar by 0.1 percent against other major currencies made gold more appealing to international investors, while yields on 10-year U.S. Treasury bonds also fell. Attention now shifts to upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which are expected to provide further insights into the Federal Reserve's monetary policy direction. In other precious metals, spot silver declined by 0.4 percent to USD27.44 per ounce, platinum fell 1.1 percent to USD920.47, and palladium dropped 2.1 percent to USD903.30, with both silver and platinum recording weekly losses despite palladium showing some weekly gains.
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