Gold rose following a five-day drop — the longest run of declines in almost six months — as traders took their cues from wider markets after a bumpy ride, with the US dollar and Treasury yields both weakening.
Bullion for immediate delivery climbed toward $2,395 an ounce after shedding almost 3% in the losing streak. With Asian equities gaining after a period of weakness, the greenback and yields both eased, strengthening the conditions for bullion, which doesn’t pay interest.
Gold hit a record last month, largely on expectations the Federal Reserve would soon deliver interest-rate cuts. Since then, global markets have seen a return of volatility, with concerns that the US may face a recession, and tighter policy from the Bank of Japan igniting a selloff in equities and sharp moves in currencies including the yen. While bullion acts as a haven, it can also face short-term weakness during periods of market upheaval.
Spot gold rose 0.5% to $2,394.25 an ounce as of 12:58 p.m. in Singapore, as a gauge of the US currency declined 0.2% and 10-year Treasury yields dropped. Silver advanced toward $27 an ounce, as platinum and palladium also gained.
Source : Bloomberg
