Gold climbs while US dollar softens; STI slips on SATS drag: Markets this week
Gold was trading near US$4,600 an ounce on Aug 21.
Gold prices surged last week, reaching $4,600 an ounce, as investors analyzed rising volatility in bond markets and Middle East tensions. The U.S. Treasury announced a doubling of buybacks on 10- to 30-year government debt to at least $4 billion per operation, aiming to stabilize the bond market amid concerns over the growing U.S. fiscal deficit.
This move reduced Treasury yields and put downward pressure on the U.S. dollar, which traded at around $1.27 per dollar on Aug 21, down from $1.28 at the start of the week. The greenback's weakness made dollar-denominated gold more affordable for international buyers, boosting demand.
The Straits Times Index (STI) slipped 0.95% during the week, closing at 5,688.96 on Aug 21. Among the bank share prices, UOB fell 1.15% to $40.53, while OCBC dropped 0.61% to $30.98. DBS, however, rose 1.2% to $76. SATS, the STI's biggest decliner, fell 13.22% to $4.07 after reporting slower profit growth due to geopolitical and inflationary challenges in the Middle East. The company's Q1 revenue rose 11.3% to $1.68 billion, but net profit increased by a modest 6% to $75.1 million.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
