Gold prices rise due to a weaker US dollar and increasing demand amid higher yields
Shafaq News / Gold prices rose on Thursday, hovering close to a key $2,000 per ounce level, as a weaker U.S. dollar and lower Treasury yields buoyed demand for bullion.
Spot gold was up 0.3% at $1,995.39 per ounce, as of 0549 GMT, after hitting a three-week high of $2,007.29 on Tuesday.
U.S. gold futures gained 0.2% to $1,996.40.
"The anticipation of this effective pivot towards interest rate hike cycle peak is translating to ongoing softness in the U.S. dollar and the longer-dated U.S. yield which will support gold prices, at least in the short term," said Kelvin Wong, senior market analyst for Asia Pacific at OANDA.
The dollar (.DXY) was down 0.2% against its rivals after gains in the previous two sessions, making gold less expensive for other currency holders.
The benchmark U.S. 10-year Treasury yields fell to a two-month low on Wednesday.
The number of Americans filing new claims for unemployment benefits fell more than expected last week, but that likely does not change the view that the labor market is slowing amid higher interest rates.
(Reuters)
