Gold Continues to Strengthen, Buyers Take Advantage of Derivatives
Gold is approaching a record high again after dip buying emerged following a sharp decline over the weekend. Prices are hovering around $4,365 per ounce, nearing the peak reached the previous day. Despite easing trade tensions and the prospect of the US government reopening soon, interest in safe-haven assets remains high.
US Treasury yields fell on Monday as evidence of an oil surplus eased inflation concerns ahead of Friday's consumer price index release. Since early October, some official data has been delayed due to the government shutdown, forcing the market to rely more on alternative indicators. Lower yields typically support gold because it does not carry interest.
Market participants are also weighing news on US-China relations. President Donald Trump stated that the US would be fine ahead of the negotiations, but reiterated the threat of tariff increases if no agreement is reached before early November. At the same time, Kevin Hassett signaled that the government shutdown may end this week.
Year-to-date, the precious metal remains on a strong trajectory. Gold has risen more than sixty-five percent and recorded nine consecutive weeks of gains, supported by central bank buying and flows into exchange-traded funds. Silver even rose more than eighty percent, driven by the same factors and tight physical market conditions in London. By midday Singapore time, gold had edged higher, the dollar index was flat, while platinum and palladium weakened.
Key points:
- Dip buying pushes gold closer to a record
- Falling yields boost gold's appeal
- US-China trade news and tariff issues act as catalysts
- Year-to-date performance remains strong, silver leads gains (asd)
Source: Newsmaker.id
