The prices of gold rose on Tuesday, while the dollar and US Treasury yields fell on the growing likelihood that the Federal Reserve (Fed) cut interest rates starting next March, all in a context of little movement in the markets due to the holidays.
He gold Spot was up 0.6% at $2,064.20 an ounce in early trading, after hitting a more than two-week high of $2,070.39 in the previous session. While the futures of gold in the United States they advanced 0.3%, to $2,075.20.
“The prices of gold have resumed their upward path in the new week after receiving the support of softer-than-expected personal consumption spending data in the United States last Friday, which validates the expectations of moderate interest rates that the markets are considering,” he said. Jun Rong, market strategist at IG Yeap, told Reuters. If the trend of economic data continues, the price of gold could exceed the level of $2,080.
Meanwhile, the dollar index fell 0.1%, while the yield on 10-year US Treasury bonds fell. A weaker greenback makes the goldquoted in dollars, is more attractive to holders of other currencies.
Traditionally, bullion is considered a safe haven asset in times of geopolitical uncertainty. The value of other precious metals showed volatility: the silver spot improved 0.7%, to $24.34 per ounce; he platinum it was trading stable at $970.44; and the palladium It lost 0.8%, to $1,193.
Emerging market currencies gained this Tuesday. He Taiwanese dollar rose against the US dollar. For their part, European markets remain closed for holidays, Bloomberg reported.
Source: Ambito
