Gold climbs to four-week high as US yields drop

2022-08-02 12:34:21 GMT (Economies.com)
Gold climbs to four-week high as US yields drop

Gold prices rose in European trade for the fifth straight session, marking four-week highs as US treasury yields decline. 

 

Haven demand is climbing on the precious metal as geopolitical tensions with Taiwan increase ahead of a visit by US officials to the island. 

 

Prices Today

 

Gold prices rose 0.5% to $1,780 an ounce, the highest since July 5, with a session-low at $1,768, after rising 0.35% on Monday, the fourth profit in a row as dollar slides.

 

US Yields

 

US 10-year treasury yields declined 2.3% today for the fifth straight session, marking four-month lows at 2.516%.

 

Such developments came as traders now expect a more bearish pace by the Fed in tightening policies as the US economy faces recession.

 

Taiwan Tensions

 

US officials prepare to visit Taiwan today in an official visit, amid strong opposition by Chinese authorities and US attempts to calm Chinese nerves.

 

However a deliberately obtuse stance by the US on Taiwan makes it more difficult to ascertain the true purpose of the visit.

 

China responded by imposing new tariffs on Taiwanese goods, with several Chinese military aeroplanes flying near Taiwanese borders.

 

The SPDR 

 

Gold holdings at the SPDR Gold Trust remained flat yesterday at 1,005 tones. 

 
 
 
  Symbol Last Change Chg.%
1.0265
0.0067
0.6597%
1.2139
0.0022
0.1816%
20.583
0.219
1.075%
92.262
3.784
4.277%
97.88
-1.74
1.75%
1796.970
15.295
0.859%
 
 
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