Gold rises as US bond yields fall, dollar muted

Gold rises as US bond yields fall, dollar muted

by admin- Thursday, October 27th, 2022 07:29:18 AM

Oct 26 Gold prices edged better on Wednesday, helped by a frail US dollar and fall in Treasury yields, even as traders awaited guidance at the US Federal Reserve’s policy stance to gauge whether or not a slowdown is probable.

Spot gold rose 0.3% to $1,656.60 in line with ounce, even as US gold futures have been up 0.2% at $1,660.Ninety.

Yields on the 10-year Treasury word fell, moving similarly away from a near 15-yr high hit ultimate week, as data signalled that the Fed’s competitive tightening become cooling the economic system.
Gold could see further near-term upside movements if US dollar maintains to weaken and bond yields fall, said IG market strategist Yeap Jun Rong.
“With the bearish positioning for gold charges, the possibility of a robust close to-time period rally might be at the table if any warning signs of a price slowdown is offered from the Fed.”

Fed meeting in Nov
While the Fed is widely anticipated to supply a fourth straight seventy five-foundation-factor interest-charge hike in November, it is also in all likelihood to discuss how tons higher it could safely push borrowing expenses.

Rising interest quotes dim bullion’s enchantment, as they increase the possibility cost of protecting the non-yielding asset.

Data on Tuesday confirmed US client self belief ebbed in October, domestic fees fell sharply in August and there were symptoms that the Fed’s aggressive stance is beginning to cool the exertions market.

Investors will maintain a close watch for US GDP and middle inflation measures, and Thursday’s policy meet of the European Central Bank.

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