Gold hits two-week high as US Treasury bond yields decline

Gold prices rose to their highest level in nearly two weeks today, Wednesday, as US Treasury bond yields continued to decline after dovish statements from US central bank officials indicated that interest rates had likely reached their peak.

According to Reuters, gold in spot transactions increased 0.6 percent by 1132 GMT to $1871.90 per ounce, the highest level since September 29. US gold futures also rose 0.6 percent to $1,886.30.

Ole Hansen, head of commodities strategy at Saxo Bank, said: “Comments from a number of central bank officials that the market may be strong enough given the recent rise in bond yields essentially raises some speculation about whether we might… We witnessed the peak in US interest rates.”

Atlanta Federal Reserve Bank President Raphael Bostic said on Tuesday that the US central bank does not need to raise interest rates further, while Minneapolis Federal Reserve President Neel Kashkari said it was “possible” that further increases would not be needed. .

Benchmark ten-year US Treasury bond yields fell to 4.5582 percent, further away from the highest level since 2007, which they recorded last week.

Lower interest rates would put pressure on the dollar and bond yields, with increased demand for the precious metal, which does not generate a return.

As for other precious metals, silver rose in spot transactions by 1.3 percent to $23 per ounce, while platinum fell by 0.1 percent to $879.95 and palladium by 0.7 percent to $1,161.44.