GOLD

Delayed - 07:47 2022-11-27 pm EST
1752.90 USD +0.12%

Gold Moves Higher as Bond Yields Moderate even as the Dollar Resumes its Rise

09/30/2022 | 09:11am
(MT Newswires) -- Gold traded higher early on Friday, supported by falling bond yields, even as the dollar moved higher.

Gold for December delivery was last seen up US$7.50 to US$1,676.10 per ounce.

The rise comes amid volatile equity and debt markets, as central banks hike interest rates to slow a rapid rise in costs. Gold has suffered in the fallout, down 3.9% over the past month and 7.7% over the third quarter, as investors turn to the dollar as the safe haven of choice amid the turmoil.

"The world's central banks continue to battle inflation. Key to that has been the Fed, US treasury yields, and a strong dollar, and while yesterday the Bank of England's decision to unveil a bond buying program kicked off a brief rally as the dollar and treasury yields fell, overall sentiment remains pretty bearish for gold as the Fed is set to keep raising rates," RBC Capital Markets commodities strategist Christopher Louney said in a Thursday note.

The dollar was higher early on Friday with the ICE dollar index last seen up 0.2 points to 112.45, though it remains under the 20-year high of 114.78 touched earlier this week.

Bond yields fell however, supportive for gold since the metal offers no interest. The US 10-year note was last seen paying 3.725%, down 6.2 basis points.

MT Newswires 2022
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