Gold prices rose on Wednesday as the dollar’s decline eased pressures to increase the yield on Treasury bonds and the Federal Reserve’s hawkish stance on inflation.
And the dollar’s decline increases the attractiveness of gold to buyers of other currencies.
By 0106 GMT, gold in spot transactions rose 0.1% to $ 1816.56 an ounce.
US gold futures fell 0.2% to $1,814.50 an ounce.
The dollar extended its losses for the fourth day, retreating from the highest level in two decades once morest a basket of major currencies.
But the yield on US Treasury bonds for ten years stabilized following a sharp increase in the previous session, which limited the demand for the precious metal.
Federal Reserve Chairman Jerome Powell pledged that the central bank would raise interest rates as much as needed to curb rising inflation, which he said threatens the foundation of the economy.
As for other precious metals, silver increased in spot transactions 0.2% to $21.66 an ounce.
Platinum rose 0.1% to $952.31 an ounce, and palladium rose 0.2% to $2057.35 an ounce.
Archyde.com
