Gold closed up $3.9 on a weak dollar and falling U.S. treasury yields

Gold futures closed higher on Tuesday (Oct. 25) as the dollar’s depreciation and a drop in U.S. Treasury bond yields boosted the market. Investors also bought gold as a safe haven after the U.S. released weak economic data.

  • Gold was up $3.9, or 0.24%, at $1,658 an ounce.
  • Silver futures were up 16 cents, or 0.83%, at $19.349 an ounce.
  • The platinum contract was down $6.9, or 0.74%, at $919.7 an ounce.
  • The palladium contract was down $49, or 2.5%, at $1,918.80 an ounce.

The dollar index against the six major currencies in a basket of currencies fell 0.9% to 110.9500, while the yield on the 10-year U.S. Treasury bond fell to 4.099%.

A weakening of the dollar makes gold contracts priced in dollars cheaper for investors holding other currencies, while a decline in U.S. Treasury bond yields reduces the chances of holding gold. This is because gold is an asset that does not yield interest.

In addition, investors bought gold as a safe haven after the U.S. released weak economic data. The S&P CoreLogic Case-Shiller survey showed that the nationwide house price index in the U.S. rose 13% year-on-year in August. This was a slowdown from July’s 15.6% increase, which had been impacted by a rise in mortgage rates.

The Conference Board’s consumer confidence index fell to 102.5 in October, its lowest level since July from 107.8 in September, reflecting a rise in interest rates and inflation.

The Spot Market is Open

Wednesday, October 26, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.30
1,657.20
1,658.20
+4.10
+0.25%
1,649.60
1,658.90
Silver
11.30
19.48
19.58
+0.15
+0.78%
19.19
19.59
Platinum
11.30
920.00
930.00
+3.00
+0.33%
910.00
932.00
Palladium
11.30
1,888.00
2,038.00
+31.00
+1.67%
1,857.00
2,038.00
Rhodium
05.00
13,000.00
15,000.00
0.00
0.00%
13,000.00
15,000.00

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