Gold surges over 3% as US Treasury announcement hurts yields, dollar
Gold surged over 3% to its highest in over two and a half months on Wednesday after a surprise liquidity support announcement by the U.S. Treasury knocked down bond yields and the dollar ahead of the release of the Federal Reserve’s July meeting minutes. Spot gold climbed 3.5% to $4,486.88 per ounce by 10:35 a.m. EDT (1435 GMT) after touching its highest level since June 4 at $4,491.16 earlier in…
Gold experienced a remarkable surge of over 3% on Wednesday, reaching its highest level in more than two and a half months. The unexpected announcement from the U.S. Treasury, which aimed to provide liquidity support, caused a significant drop in bond yields and the value of the dollar. As the Federal Reserve's July meeting minutes were released, gold rose by 3.5%, trading at $4,486.88 per ounce by 10:35 a.m. EDT.
Earlier in the day, gold had even reached its highest level since June 4 at $4,491.16. U.S. gold futures also increased by 2.8% to $4,546.10. Technical analyst Robert Gottlieb noted that the surprise announcement was unexpected and highly bullish for gold, as it indicated lower yields on longer-dated Treasuries and potentially a weaker dollar.
The U.S. dollar index dropped by 0.8%, making dollar-priced gold more affordable for holders of other currencies.
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