Gold prices rise with a slight decrease in US bond yields

  • 29 September, 2021
  • 2:41 pm EEST

Gold prices rose during trading on Wednesday, supported by a slight decline in US bond yields.

The rise in the prices of the yellow metal came today, after gold prices fell by more than 14 dollars, at the close of trading on Tuesday, with the rise in US bond yields.


Gold and metal prices today

Gold futures prices for December delivery rose 0.20% to $1,741 an ounce by 08:25 AM GMT.

While gold prices in spot transactions increased by 0.36%, recording 1740 dollars an ounce.

Silver futures prices, for December delivery, fell 0.74%, to $22.30 an ounce.

And spot prices for platinum rose 0.22%, recording $969.75 an ounce.

Meanwhile, the dollar index, which measures the performance of the US currency against a basket of 6 other major currencies, rose 0.03%, at 93.7980 points.

Update – Gold prices are down more than $14 as US bond yields rise


Interest rate and bond yields

Federal Reserve Chairman Jerome Powell confirmed – in his testimony to the US Congress – that the US economy is still far from achieving the maximum employment limit, which is a key matter for the central bank to raise interest rates.

Although US 10-year Treasury yields fell slightly, they held above 1.5%, a level last seen in June.


Influential Factors

Hui Li, an economist at China Offshore Banking Corporation Limited (OCBC), confirmed that the rise in gold prices today came as a technical rebound, expecting the yellow metal prices to witness slight increases for the current period.

And gold is expected to settle around the $1,500 range by the end of next year, while the Federal Reserve is heading to start raising interest rates, according to Reuters.

After breaking the support level at $1,740, gold could reach $1,700 this week, said Jeffrey Haley, chief market analyst at OANDA for Asia Pacific.

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