Gold Rises as Dollar, Bond Yields Fall
In the commodities market, gold price rose for a second-straight session early on Friday on a weaker US dollar and falling bond yields. Market data shows that Gold for December delivery was last seen up US$10.00 to US$1,741.30, a two-week high.
The price of the metal has fallen nearly 6% over the past month as a strong US dollar and rising bond yields have pressured the metal along with low investor interest despite rising inflation and volatile equity markets.
“For a long time, the strength of the dollar was to blame for gold’s weakness. However, the price has recently fallen even in EUR. Speculative investors, in particular, appear to be showing little interest: for the first time in more than three years, the majority of them can be found on the short side,” Commerzbank said in a note.
However the dollar continued to weaken from 20-year highs touched last week, making gold more affordable for international investors. The ICE dollar index was last seen down 0.06 points to 106.85. READ: Gold Price Spikes as U.S Bond Yields Peak
Bond yields also weakened, bullish for gold since it offers no interest. The yield on the US 10-year note was last seen down 7.1 basis points to 2.811%, a two-week low. # Gold Rises as Dollar, Bond Yields Fall
