Advertisements
Home News Gold hovers near four-week high as US yields decline

Gold hovers near four-week high as US yields decline

by sun

 

Gold prices rose in European trade on Thursday, maintaining gains for the fourth straight session and almost hitting a four-week high as US 10-year treasury yields decline.

Recent weak US data hurt chances of another US interest rate hike in November, with investors now awaiting important US consumer spending data.

Advertisements

Gold Prices Today

Advertisements

Gold prices rose 0.3% to $1,947 an ounce, with a session-low at $1,942 an ounce, after rising 0.25% yesterday, the third profit in a row, marking a four-week high at $1,949, as the dollar and US yields decline.

Advertisements

US Yields

Advertisements

US 10-year treasury yields fell 0.5% on Thursday, extending losses for the fourth straight session and almost touching a three-week trough at 4.087%, boosting non-yielding assets.

Advertisements

Such developments came after a spate of weak US data which showed the economy is slowing considerably in the second quarter.

Grim Data

Recent US data showed the private sector added considerably less jobs than expected last month.

Such weak data reinforced expectations the Fed will end the current cycle of policy tightening.

US Rates

After such data, odds for a 0.25% interest rate hike by the Federal Reserve in September fell from 13.5% to 11.5%.

Odds for a 0.25% interest rate hike November fell as well to 44%.

New Data

Now investors await important US consumer spending data for July, which the Fed rely on to gauge inflation.

Previous Boston Fed President Eric Rosengren said the Fed will end the cycle of policy tightening if data continued to show weakening growth and labor conditions.

The SPDR

Advertisements

Gold holdings at the SPDR Gold Trust rose 0.87 tonnes yesterday to a total of 890.10 tonnes, the highest since August 18.

You may also like

Rckir is a comprehensive financial portal. The main columns include foreign exchange wealth management, futures wealth management, gold wealth management, stock wealth management, fund wealth management, insurance wealth management, trust wealth management, wealth management knowledge, etc.

【Contact us: [email protected]

© 2023 Copyright Rckir.com [[email protected]]