Gold firms as lower yields offset higher dollar

Gold prices stabilized today, Wednesday, as the decline in yields on US Treasury bonds compensated for the consequences of the rise of the dollar to some extent, while traders awaited important inflation data and statements by US Central Bank officials this week to know the expected date to start reducing interest rates.

According to Reuters, by 0643 GMT, gold settled in spot transactions at $2030.12 per ounce. US gold futures fell 0.2% to $2,039.40 an ounce.

The yield on ten-year US Treasury bonds fell to 4.2855 percent from 4.3150 percent on Tuesday.

Markets are now awaiting the release of gross domestic product data in the United States at 1330 GMT, while data on personal consumption expenditures, the Federal Reserve’s preferred indicator for measuring inflation, is expected to be announced on Thursday.

Low interest rates enhance the desire to own gold, which does not generate a return.

As for other precious metals, platinum fell in spot transactions by 0.3% to $885.60 per ounce, and palladium fell by about 1% to $927.04 per ounce. Silver fell 0.1% to $22.40 an ounce.