Gold Trading Near Its Record High as Treasury Yields Weaken
Gold traded near a record high midafternoon on Wednesday, pushed up by expectations interest rates will continue to fall and lower treasury yields.
Gold for December delivery was last seen up US$11.90 to US$2,696.50 per ounce, after earlier trading at US$2,702.50. above the record close of US$2,694.90 set on Sept.26.
The price of the metal has climbed 39% over the past year, supported by safe-haven buying on geopolitical worries, high physical demand and the prospect of lower interest rates.
"Since hitting a cycle low last October, the gold rally has...continued to accelerate, highlighting the level of FOMO [fear of missing out] and fundamental support the metal has and continues to enjoy," Ole Hansen, head of commodity strategy at Saxo Bank, noted. "In the short term, traders will be watching incoming US data to see whether support remains strong enough for the metal to reach another fresh record, the sixth this year."
The dollar rose early, with the ICE dollar index last seen up 0.28 points to 103.54.
Treasury yields weakened, lowering the carrying cost of owning gold. The U.S. two-year note was last seen down 1.0 basis points to 3.946%, while the 10-year note was paying 4.021%, down 1.6 basis points.
Source : MT Newswires
