19.1 C
New York
Saturday, May 28, 2022

Gold Price Rises as Dollar and Treasury Yields Fall

- Advertisement -
- Advertisement -

By Bharat Gautam

March 17 (Reuters) – Gold rose on Thursday, following the Federal Reserve’s first rate hike in three years, as gains were underpinned by falling dollar and bond yields. of the US Treasury.

* At 1023 GMT, the current value was 0.8%, about $1,942.61 per month, after climbing nearly 1% in the session. US gold futures were up 1.8% at $1,943.30.

* The Fed hiked rates by 25 basis points on Wednesday, but this does not appear to have eased inflation concerns, keeping gold’s appeal as a hedge intact.

* “It’s all about selling the rumour, buying the fact,” as gold advances on bad news priced in, according to independent analyst Ross Norman. “While counterintuitive as the rate hike should be negative for gold, it confirms confirmation that we have an inflation problem.”

* Although the Fed laid out an aggressive plan to raise borrowing costs next year, the dollar and 10-year bond yields were lower, while investors appear to have already priced in an even stronger rate hike, boosting to gold.

* The Fed’s “modest” response to accelerating inflation is helping gold, said Brian Lan of GoldSilver Central. “People will see that it’s still good to hold gold, because 0.25% doesn’t even rock the boat.”

* Analysts also believe safe-haven gold investors will continue to closely monitor political and economic risks from Russia’s invasion of Ukraine, which entered its fourth week.

* In other precious metals, spot silver was up 1% at $25.31 an ounce; platinum gained 0.4% to $1,021.64; and palladium improved 2.6% to $2,471.57.

(Edited in Spanish by Carlos Serrano)

Source link

- Advertisement -

New Articles