Gold prices remain high amid weak dollar, Treasury yields

(MENAFN) Gold prices remained strong above USD2,500 in Asian trading on Tuesday, buoyed by a weaker U.S. dollar and declining Treasury yields. Spot gold saw a slight increase of 0.1 percent, trading at USD2,505.92 per ounce as of 0038 GMT, maintaining levels near its recent all-time high of USD2,509.65. U.S. gold futures also gained 0.1 percent, reaching USD2,543.90. The decline in the dollar to a seven-month low has made gold more appealing to international buyers, while lower benchmark 10-year Treasury yields have supported the metal's attractiveness as a non-yielding asset.

Traders are closely watching the upcoming release of the minutes from the Federal Reserve's July policy meeting on Wednesday and Fed Chairman Jerome Powell’s speech on the U.S. economic outlook on Friday at the Jackson Hole symposium. The Fed is anticipated to implement a 25 basis point rate cut at each of its remaining meetings in 2024, with a majority of economists not expecting a recession. Lower interest rates typically increase the appeal of gold as it does not generate interest income.

In the geopolitical arena, U.S. Secretary of State Antony Blinken highlighted the latest diplomatic efforts to secure a ceasefire in Gaza, calling them "possibly the best chance, and maybe the last chance," for reaching an agreement. In the broader metals market, silver prices fell 0.3 percent to USD29.39 per ounce, platinum increased by 0.3 percent to USD956.41, and palladium dropped 0.2 percent to USD930.25. According to Target Asset Management, gold remains one of the top-performing assets this year, reflecting its continued strength and investor interest. 

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