Gold rises after US treasury yields drop to record low

Economies.com
2020-02-27 10:08AM UTC

Gold prices rose on Thursday, to extend gains for the second, as the US dollar fell due to a drop in the US Treasury bond yields, while safe-haven demand on gold increased due to the fears over the coronavirus health crisis in most parts of the world.

 

Gold prices rose 0.7% to $1,652.63 an ounce, after opening at $1,640.87, and earlier hitting an intraday low of $1,638.59.

 

The yellow metal gained 0.4% yesterday, to resume its gains after hitting a pause in the previous day due to profit-taking from a 7-year high of $1,689.33.

 

The US dollar index fell 0.5% today, to deepen its losses for the fifth straight day, and hit a 2-week low at 98.67 points, which comes in favour of gold and other dollar-denominated metal prices.

 

The drop in the US dollar is due to the 10-year US Treasury bonds yields continued to fall for the second day in a row, and hit a new record low at 1.2970%, which crippled the greenback.

 

Accordingly, the successive negative news around the coronavirus in most parts of the world spooked investors, especially after the US health centers warned about the possibility of an outbreak in the country, which led the US interest rate futures to be fully priced for the prospects of the Fed to cut rates at the next June meeting by 25 basis points, which were at only 50% a week ago.

 

Gold stocks at the SPDR ETF fell by 4.39 metric tonnes yesterday, the first drop since Jan. 31, to reach a total of 935.70 mt, and give up the highest level since Nov. 10, 2016 at 940.09 mt.

Commodities News

Gold News

Commodities

Gold hits fresh record highs, marking a 6% quarterly profit
2024-03-28 20:28PM UTC
Gold Prices Gold prices rose on Thursday to fresh record highs while the dollar eked out gains ...
Copper News

Commodities

Copper edges up while facing pressures from Chinese demand concerns
2024-03-28 16:45PM UTC
Copper prices rose modestly on Thursday while the dollar gained ground, with ongoing concerns about ...
Oil News

Commodities

Oil prices extend gains after strong US growth data
2024-03-28 13:03PM UTC
Global Oil Prices Global oil prices extended their gains in American trade on Thursday and hit ...

Commodities Technical Analysis

Natural gas Analysis

Commodities

Natural gas price still confined – Forecast today – 29-3-2024
2024-03-29 06:16AM UTC
Natural Gas Price Forecast for Today - 29-3-2024 No news for natural gas price until this ...
Platinum Analysis

Commodities

Platinum price renews the positive action – Forecast today – 29-3-2024
2024-03-29 06:10AM UTC
Platinum Price Forecast for Today - 29-3-2024 Platinum price confirmed keeping the bullish ...
Copper Analysis

Commodities

Copper price gets the positive momentum – Forecast today – 29-3-2024
2024-03-29 06:09AM UTC
Copper Price Forecast for Today - 29-3-2024 Copper price repeated the positive stability ...