Gold futures rose more than $30, near $1,670 today. The positive factor from the depreciation of the dollar. and the fall in US government bond yields.
At 00.20 am Thai time, the COMEX (Commodity Exchange) gold contract will be delivered in December. plus $33.60 or 2.05% to $1,669.80/ounce
A weakening dollar will increase the attractiveness of gold. by making gold contracts cheaper for holders of other currencies The fall in US government bond yields. It will reduce the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
In addition, gold prices also gained positive factors as the Bank of England (BoE) announced measures to stabilize the financial markets. by buying unlimited government bonds to support the pound and pressured the British government bond yields to decline.
Investors flock to sell British government bonds. After last week Government unveils massive tax cuts Including measures to heal households and businesses that have been affected by the rising energy prices. This has caused many parties to worry regarding the state of the British finances due to rising government debt.
The procession of selling such government bonds The yield on the 30-year government bond rose today above 5% for the first time in 20 years, or since 2002, before weakening following the BoE announced stabilization measures in the market.