Gold prices rise amidst lower Treasury yields
Shafaq News / Gold prices rose on Thursday, helped by a softer dollar and lower Treasury yields, as traders looked to U.S. economic data for more clues on the Federal Reserve's monetary policy outlook.
Spot gold was up 0.3% at $2,035.19 per ounce, as of 0709 GMT. U.S. gold futures was steady at $2,047.10.
Benchmark U.S. 10-year bond yields held near a five-month month low touched on Wednesday, after British inflation plunged in November to its lowest rate in more than two years.
The dollar was down 0.1% against its rivals, making gold less expensive for other currency holders.
"Gold remains supported by the prospect of a global rate-cutting cycle, chiefly in the U.S.," said Kyle Rodda, a financial market analyst at Capital.com.
"From a technical standpoint, prices have lost momentum; there's the risk we get a short-term pullback, especially given the recent pushback from Fed officials about the prospect for cuts next year and the potential overbought nature (of) bonds."
A dovish tilt from the Fed in its last policy meeting has prompted traders to pencil in several rate cuts in 2024, starting as early as March.
However, Fed officials have since been pushing back against the idea of rapid rate cuts next year. Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
The focus now shifts to the U.S. third-quarter GDP report and a weekly jobless claims data later in the day, ahead of the much-awaited November core personal consumption expenditure (PCE) index report, the Fed's preferred measure of underlying inflation, on Friday.
(Reuters)
