Gold Soars! 2 Key Market Drivers Today
Gold prices rose on Monday, trading higher as market optimism grew that the lengthy US government shutdown would soon end.
Gold rose $85.20, or about 2.12%, to reach US$4,087 per ounce, its highest level since October 27, although it remains below the metal's peak of US$4,381 reached on October 20. The rise was fueled by a deal between some US Senate Democrats and the Republican majority seeking to end the 40-day government shutdown, although the deal did not include the restoration of Medicare subsidies, a key Democratic demand.
Optimism about the reopening of the US government drove investors into riskier assets, with European and Asian stock markets strengthening, and US stock futures expected to open higher. The US dollar weakened slightly, with the ICE dollar index down 0.05 points to 99.55. US government bond yields also rose, with the two-year bond yield reaching 3.593%, up 2.5 basis points, while the 10-year bond yield rose 1.6 basis points to 4.12%.
Source: Newsmaker.id
