Business News Asia
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 |
