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Gold Prices Dip Over 1% As Dollar Strengthens Globally
(MENAFN- The Rio Times) On Thursday, gold futures closed significantly lower, falling more than 1%, as the U.S. dollar saw considerable gains on the international stage.
Peter Cardillo of Spartan Capital Securities noted a mixed trend in Treasury yields, alongside the rising U.S. dollar. He added that the anticipated U.S. interest rate cut next month is contributing to the observed weakness in gold.
In the Comex metal division of the New York Mercantile Exchange, gold for December delivery declined by 1.22% to $2,516.70 per troy ounce.
Around 3:10 PM Brasília time, the DXY index, which tracks the dollar against a basket of developed nations' currencies, was up 0.49% at 101.535 points.
Yields on the two-year Treasury note increased from 3.943% to 4.014%. Ten-year Treasury note yields rose from 3.805% to 3.861%.
This movement in gol prices is significant as it reflects broader economic currents. The strength of the dollar often inversely affects gold, a safe-haven asset, since a stronger dollar makes gold more expensive for holders of other currencies.
Moreover, the shifts in U.S. Treasury yields impact investor appetite for gold, which, unlike government securities, does not yield interest. Understanding these dynamics is crucial, as they not only affect investors but also economies globally.
The anticipated changes in U.S. interest rates can sway investment strategies and influence markets worldwide. They also highlight the interconnected nature of global finance.
Peter Cardillo of Spartan Capital Securities noted a mixed trend in Treasury yields, alongside the rising U.S. dollar. He added that the anticipated U.S. interest rate cut next month is contributing to the observed weakness in gold.
In the Comex metal division of the New York Mercantile Exchange, gold for December delivery declined by 1.22% to $2,516.70 per troy ounce.
Around 3:10 PM Brasília time, the DXY index, which tracks the dollar against a basket of developed nations' currencies, was up 0.49% at 101.535 points.
Yields on the two-year Treasury note increased from 3.943% to 4.014%. Ten-year Treasury note yields rose from 3.805% to 3.861%.
This movement in gol prices is significant as it reflects broader economic currents. The strength of the dollar often inversely affects gold, a safe-haven asset, since a stronger dollar makes gold more expensive for holders of other currencies.
Moreover, the shifts in U.S. Treasury yields impact investor appetite for gold, which, unlike government securities, does not yield interest. Understanding these dynamics is crucial, as they not only affect investors but also economies globally.
The anticipated changes in U.S. interest rates can sway investment strategies and influence markets worldwide. They also highlight the interconnected nature of global finance.
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