Gold Rises as the Dollar Falls

On Wednesday, gold prices gained as the dollar’s weakening offset pressure from rising US bond yields, and continued fears that interest rates will be raised, sooner than expected.

Gold rose 0.4% to $1,775.21 an ounce in the spot trading at 0733 GMT, according to Reuters.

On Tuesday, the yellow glittering metal gained roughly 1.2% before losing most of those gains, when Treasuries yields increased.

Gold futures in the United States increased by 0.3% to $1,776.20 an ounce.
The cost of keeping non-yielding gold increased on Wednesday, as the US 10-year Treasury bond yields hit its highest levels, since May 20.

The dollar index was barely changed and remained close to Tuesday’s close, which was its lowest level in a week, negating the impact of Treasury bond price increase.

Gold is less expensive for holders of foreign currencies when the dollar is weak.

Silver increased 0.8% to $23.84 an ounce in the spot trade, for other precious metals.

Palladium jumped 0.2% to $201.17, while platinum gained 0.4% to $1044.51.