Business News Asia
The gold price closed slightly higher. Good U.S. economic data, the strong dollar, and rising yields on 10-year government bonds, however, continue to put pressure on the gold price.
Gold futures rose 1.2% to $1.7521 per ounce.
Silver futures rose 1.2% to close at $22.694 per ounce.
Platinum contracts rose 0.17% to $981.6 per ounce.
The palladium price fell 0.2% to $1,947.70 per ounce.
The DXY rose 0.06% to 93.3812. A strengthening dollar makes gold less attractive for holders of other currencies. However, it remains questionable how the dollar can gain strength based on the high inflation figures. That can actually only mean that other fiat currencies perform even worse.
In addition, the yield on 10-year government bonds rose by more than 1.5%. This is also putting pressure on the gold price. The bond yield increases the opportunity cost of owning gold. This is because gold is an asset that does not yield interest.
U.S. economic data continue to give reason to hope for progress in the economic recovery. According to a report by the U.S. Department of Commerce, orders for durable goods and machinery with a life of 3 years or more rose by 1.8% in August, compared with 0.5% in July.
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Tuesday, September 28, 2021