Gold rises supported by a decline in the dollar and US Treasury bond yields
Gold prices rose on Wednesday, supported by a decline in the dollar and US Treasury bond yields.
Spot gold contracts rose by 0.1% to $1,927.59 per ounce, and US gold futures contracts were settled at $1,952.90.
The dollar fell against its rivals, making gold less expensive for holders of other currencies.
Benchmark 10-year Treasury yields remained below their recent peak.
Gold is seen as a hedge against inflation and geopolitical risks.
Gold’s rise comes as the United States struggles with rising inflation, leading to interest rate hikes by the Federal Reserve.
Higher interest rates could cause Treasury yields to rise, making gold less attractive.
However, a decline in the dollar and US Treasury yields supports gold’s rise.
Gold is expected to continue to perform well under conditions of economic uncertainty, as investors search for a safe haven.
