Gold prices rose, today, Tuesday, May 17, with the dollar’s decline, after previous pressures that led to the decline of the yellow metal with the recovery of US Treasury bond yields.
The dollar is struggling to make gains after falling from nearly 20-year highs, while a weakening Chinese yuan found a floor as investors scaled back bets on whether US interest rate increases would lead to further gains.
The weakness of the dollar pushes gold prices to rise, as it makes the precious yellow metal more attractive to buyers and investors who deal in currencies other than the dollar.
Gold Prices Now
Spot gold prices rose 0.21% to $1,828.29 an ounce, while US gold futures rose 0.6% to $1,825.00.
Spot silver also rose 0.4% to $21.69 an ounce, while platinum up 1.17% to $956.57, and palladium up 2.55% to $2051.11.
Despite this, demand for non-yielding gold fell, with the benchmark 10-year US Treasury yields rising.
Gold Is A Safe Haven
SBI Managing Partner Stephen Innes said that after obtaining much-needed liquidation in the gold markets, long-term stockholders could begin to position the final turnaround based on tough US economic data.
He pointed out that bullion is viewed as a safe haven during economic crises, and can also be considered a hedge against inflation.
Gold prices fell to a 3-month low on Monday, May 16, but later reversed course, after US Treasury yields fell.
Technical analyst Wang Tao said spot gold may rebound further to the $1,840-$1,849 an ounce range, and the downtrend from the April 18 high may be reversed.