Gold closed up $33.8 on weaker dollar and falling U.S. treasury yields

Gold futures rose more than $30 on Wednesday (Sept. 28), helped by the dollar’s depreciation and a drop in U.S. Treasury bond yields.

  • Gold futures rose $33.8, or 2.07%, at $1,670 per ounce.
  • Silver futures were up 54.3 cents, or 2.96 percent, at $18.88 an ounce.
  • Platinum was up $21.1, or 2.51%, at $860.80 an ounce.
  • The palladium futures rose $78.70, or 3.8%, at $2,169.10 an ounce.

The dollar index fell 1.31% against the six major currencies in the currency basket to 112.6080, while the yield on the 10-year U.S. Treasury bond fell 0.26%, its biggest one-day decline since 2009.

The weakening of the dollar has meant that gold contracts priced in dollars have become cheaper for investors holding other currencies, while a fall in U.S. government bond yields will lower the cost of owning gold. This is because gold is a non-interest-bearing asset.

The dollar index and U.S. bond yields fell after the Bank of England (BoE) announced measures to stabilize financial markets. It is buying as many long-term British bonds as necessary until October 14.

“The BoE will buy bonds at the size necessary to restore stability in the market. This is because if the market continues to be volatile, it creates a significant risk to UK financial stability,”

the BoE said in a statement late evening.

The Spot Market is Open

Thursday, September 29, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.10
1,653.80
1,654.80
-6.30
-0.38%
1,652.10
1,661.40
Silver
11.10
18.73
18.83
-0.17
-0.87%
18.65
19.00
Platinum
11.10
858.00
868.00
-7.00
-0.81%
857.00
878.00
Palladium
11.10
2,060.00
2,210.00
-18.00
-0.87%
2,052.00
2,228.00
Rhodium
05.00
12,700.00
14,700.00
0.00
0.00%
12,700.00
14.700.00

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