Gold rises $19.9 as Treasury bond yields fall

Gold futures closed more than 1% higher on Tuesday (Jan. 3), supported by falling U.S. Treasury bond yields. Investors will keep an eye on the minutes of the Federal Reserve’s December meeting, which will be released on Wednesday (U.S. time).

  • Gold futures rose $19.9, or 1.09%, to close at $1,846.1 per ounce.
  • Silver futures rose 19.6 cents, or 0.82%, to close at $24.236 an ounce.
  • Platinum futures rose $10.4, or 0.96%, to close at $1,093.3 per ounce.
  • Palladium futures fell $105.10, or 5.9%, to settle at $1,692.90 an ounce.

The yield on the 10-year U.S. Treasury bond fell to 3.739% overnight as a decline in government bond yields reduces the cost of holding gold. This is because gold is an asset without a return in the form of interest.

Analysts expect gold prices to recover in 2023, based on expectations that the Fed will delay rate hikes. Add to that the trend that various national central banks will continue to buy gold into their reserves as a safe haven amid geopolitical concerns.

The managing director and chief investment officer of Swiss Asia Capital said gold prices could reach $4,000 per ounce in 2023 as several countries face recession. This will prompt many central banks to slow down interest rate hikes and is a factor attracting investment in gold.

Investors await the minutes of the Fed’s December monetary policy meeting and non-farm payroll data for December on Wednesday, January 4.

The Spot Market is Open

Wednesday, January 4, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.15
1,846.40
1,847.40
+6.70
+0.36%
1,836.20
1,848.40
Silver
12.15
24.10
24.20
+0.14
+056%
23.92
24.24
Platinum
12.15
1,085.00
1,095.00
+5.00
+0.46%
1,074.00
1,097.00
Palladium
11.50
1,665.00
1,815.00
+35.00
+2.15%
1,630.00
1,821.00
Rhodium
06.00
11,000.00
13,000.00
0.00
0.00%
11,000.00
13,000.00

Leave a Reply

Change Language
%d bloggers like this: