Gold recovers from month-low as the dollar and bonds fall

Gold prices rose today, Wednesday, from their lowest levels in one month, which they recorded in the previous session, with the decline in the dollar and bond yields, a day before the release of US consumer price index data, which may provide clues about the path to raising interest rates.

By 0644 GMT, spot gold rose 0.3% to $1930.37 an ounce, after falling to its lowest level since the tenth of July at $1922 an ounce on Tuesday. And US gold futures increased 0.2% to $ 1964.50 an ounce.

According to “Reuters”, Baden Moore, head of commodities management at the National Bank of Australia, “For a sustainable recovery (in gold), we believe that the market needs more certainty about lowering US interest rates in 2024.”

The data showed earlier that the consumer price index in China contracted in July, with the difficulty that the second largest economy in the world finds in reviving demand, in addition to the increasing pressure on the authorities to take additional direct stimulus measures.

Gold, which is usually seen as a hedge against economic risks, received support from renewed concerns about the world’s largest economy after Moody’s downgraded the credit rating of several US banks.

As a result, long-term US Treasury yields fell, making gold more attractive. The dollar index also remained far from its highest level recorded on Tuesday, and fell 0.2 percent

As for other precious metals, silver rose in spot transactions by 0.7%, to $22.91 an ounce. Platinum rose 0.7 percent to $906.46 an ounce. And palladium increased 0.5%, to $ 1226.03 an ounce.