Gold surges over 3% as US Treasury announcement hurts yields, dollar
Gold surged over 3 percent 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 3.6 percent to $4,487.91 per ounce by 2:10 p.m. EDT (1810 GMT) after touching its highest level since June 4 at…
Gold prices jumped over 3% on Wednesday, reaching a two-and-a-half month high, following an unexpected liquidity support announcement by the U.S. Treasury. This announcement caused bond yields to drop and the value of the dollar to decline ahead of the Federal Reserve's July meeting minutes release. The spot price of gold increased by 3.6% to $4,487.91 per ounce, breaking above its 100-day moving average of around $4,381.
This development is considered very bullish for gold due to the lower yields on longer-dated Treasuries and the potential for a lower dollar. Robert Gottlieb, an industry expert and former head of precious metals at Koch Supply and Trading, attributed the surge to the lower yields and the possibility of the dollar weakening, which makes dollar-priced gold less expensive for holders of other currencies. U.S. gold futures also rose 2.8% to $4,545.30.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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