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Gold prices stay over USD2,500 due to weaker US dollar, lower Treasury yields
(MENAFN) Gold prices remained above USD2,500 on Tuesday, bolstered by a weaker US dollar and lower Treasury yields, as traders anticipated the release of the US Federal Reserve's latest policy meeting minutes for further insights into potential interest rate cuts.
Spot gold increased slightly by 0.1 percent to USD2,505.92 per ounce as of 0038 GMT, according to a UK news agency. This follows Friday's record high of USD2,509.65. US gold futures also saw a 0.1 percent rise, reaching USD2,543.90.
The decline in the dollar to a seven-month low in the previous session made gold more attractive to international buyers, while the drop in benchmark 10-year Treasury yields added further support. The Federal Reserve is anticipated to reduce interest rates by 25 basis points at each of its three remaining meetings in 2024, with most economists surveyed by the news agency downplaying the risk of a recession.
Low interest rates tend to increase the appeal of gold, which doesn't offer yields. The market's focus is now on the minutes from the Federal Reserve's July policy meeting, set to be released on Wednesday, and Fed Chairman Jerome Powell's upcoming speech on the US economic outlook at the Jackson Hole symposium on Friday, which could provide additional guidance on the future direction of interest rates.
In geopolitical news, US Secretary of State Antony Blinken commented on Monday that Washington's recent diplomatic efforts to secure a ceasefire in Gaza "may be the best chance, and perhaps the last," urging all involved parties to reach an agreement. Meanwhile, in other metals, spot silver dropped 0.3 percent to USD29.39 an ounce, platinum gained 0.3 percent to USD956.41, and palladium declined by 0.2 percent to USD930.25.
Spot gold increased slightly by 0.1 percent to USD2,505.92 per ounce as of 0038 GMT, according to a UK news agency. This follows Friday's record high of USD2,509.65. US gold futures also saw a 0.1 percent rise, reaching USD2,543.90.
The decline in the dollar to a seven-month low in the previous session made gold more attractive to international buyers, while the drop in benchmark 10-year Treasury yields added further support. The Federal Reserve is anticipated to reduce interest rates by 25 basis points at each of its three remaining meetings in 2024, with most economists surveyed by the news agency downplaying the risk of a recession.
Low interest rates tend to increase the appeal of gold, which doesn't offer yields. The market's focus is now on the minutes from the Federal Reserve's July policy meeting, set to be released on Wednesday, and Fed Chairman Jerome Powell's upcoming speech on the US economic outlook at the Jackson Hole symposium on Friday, which could provide additional guidance on the future direction of interest rates.
In geopolitical news, US Secretary of State Antony Blinken commented on Monday that Washington's recent diplomatic efforts to secure a ceasefire in Gaza "may be the best chance, and perhaps the last," urging all involved parties to reach an agreement. Meanwhile, in other metals, spot silver dropped 0.3 percent to USD29.39 an ounce, platinum gained 0.3 percent to USD956.41, and palladium declined by 0.2 percent to USD930.25.
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