Gold Rises as US Bond Yields Fall Ahead of a US Fed Meeting

Gold prices rose on Tuesday, March 16th, as US Treasury yields fell, while investors awaited a Fed meeting likely to dispel concerns about rising inflation.

The spot price of gold rose 0.2% to $1735.76 an ounce while US gold futures rose 0.4% to $1735.90.

The expectations of policymakers at the next meeting of the Federal Open Market Committee are likely to indicate that the US economy will advance at the fastest pace in ten years in 2021, with the acceleration of vaccination activity with Covid-19 vaccines and the distribution of the stimulus package worth 1.9 trillion dollars to families.

And gold prices fell last week to their lowest level in nine months, as the rise of the dollar and the increase in US Treasury bonds yields undermined demand for the metal, which does not yield a return.

As for the other precious metals, there was little change in silver, which recorded $26.27 an ounce, platinum rose 0.6% to $1220.21, and palladium advanced 0.5% to $2399.12.