Gold jumps to 8-wk peak amid physical demand, falling Yields as C. Banks stay dovish
by SOURAV D | VIEW 1873
On Friday, the precious yellow metal gold gained over 1.0 per cent to a nearly two-month peak, as a number of major Central Banks across the globe had expressed a dovish tone on rate-hikes, disappointing broad-based market optimism amid a sky-scrapping inflation-surge and eventually restoring a safe-haven allure for gold. On top of that, US Treasury Yields fell sharply with US 10-year Treasury bond notes trading at 1.46 per cent, tumbling as much as 0.06 per cent in the day and proffering further uplift on US gold futures’ prices. In point of fact, the US Fed on Wednesday had clung on its ‘transitory’ inflation view, while Fed Chair Powell was quoted saying that the US Central Bank had been ‘in no rush to hike rate’ in a near future.
Gold hits 8-wk peak as C Banks strike dovish tone;Treasury Yields fall
Citing statistics, in the day’s commodity market wind-down, spot gold prices gained 1.2 per cent to $1,813.36 an ounce after opening up the day 0.3 per cent lower, while US gold futures scheduled to be expired on December ended 1.3 per cent higher to $1,816.80.
On the week, spot gold gained 1.93 per cent, the safe-haven yellow metal's largest weekly gain since May 17. Meanwhile, holding US Fed’s rate-decision accountable for the recent bull-run in gold futures’ prices, FXTM analyst Lukman Ortunga said, “Gold bulls seem to be drawing strength from the Fed’s unhurried stance on raising interest rates”.