Gold prices stabilize on Friday amid falling US Treasury yields, expectation of federal interest rate cut
Date
8/12/2024 5:59:40 AM
(MENAFN) Gold prices stabilized on Tuesday following a significant increase in the previous session, supported by a decline in U.S. Treasury bond yields. This decline in yields has bolstered investor confidence that the Federal Reserve may implement interest rate cuts in September. Spot gold remained steady at USD2,427.73 per ounce by late afternoon, maintaining its position after a 1.9 percent rise the day before. U.S. gold futures also experienced a modest increase, closing up 0.4 percent at USD2,473.40.
The precious metal had experienced a decline of approximately 3 percent on Monday as investors adjusted their positions amidst a broader sell-off in the stock market. The dollar's slight 0.1 percent drop against other currencies made gold more appealing to non-dollar holders, contributing to its stabilization. Additionally, the yield on 10-year U.S. Treasury bonds fell, further supporting gold prices. Investors are now focusing on upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data for further indications of the Federal Reserve's monetary policy direction.
In contrast, other precious metals faced declines. Spot silver fell 0.4 percent to USD27.44 per ounce, while platinum decreased by 1.1 percent to USD920.47, with both metals showing weekly losses. Palladium also dropped 2.1 percent to USD903.30, despite having recorded weekly gains earlier.
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